ECON 101 Lecture Notes - Lecture 7: Demand Curve, Normal Good, Inferior Good
Document Summary
How much people want to buy is based on how much it"s priced. Demand schedule: a table showing how much of good or service consumers will want to buy at different prices. Quantity demanded: the actual amount of a good or service consumers are willing to buy at some specific price. Demand curve: the graphical representation of the demand schedule. Shows relationship between quantity demanded and price. Slopes downward because higher price = reduced quantity demanded. Law of demand: a higher price for a good or service, other things equal, leads people to demand a smaller quantity of that good or service. Decrease in price raises the quantity demanded. As a result, the demand curve is downward sloping. Shift of the demand curve: change in the quantity demanded at any given price, represented by the change of the original demand curve to a new position, denoted by a new demand curve.