ECON 2 Lecture Notes - Lecture 2: East Los Angeles College, Ceteris Paribus, Demand Curve
Document Summary
Supply & demand a model of a competitive market. Competitive: each seller competes with many others selling identical products so they act as price takers. Has still proven useful for analyzing many markets. Relations between quantity of a good that consumers are willing and able to buy and its price, holding constant all other factors that influence it. Demand is the relationship quantity demand is a number q(p) Demand schedule- is a table relating things. The higher the price the more likely you will sub it out for another cheaper. Market demand is the combination of individual sales. If something other than price affects demand, then the demand curve shifts (change in demand) If only price changes, move along the demand curve (change in quantity demanded) Availability and prices of related goods: substitutes, complements. A relationship between quantity of a good that sellers are willing and able to sell and its price holding constant all other factors that influence it.
