ECON 1011 Lecture Notes - Lecture 9: Inferior Good, Complementary Good, Normal Good

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ECON 1011 Full Course Notes
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D = qd = f(p-, i+/-, ps+, pc-, t+, fp+, fi+, nb+) Written out is: coffee is a function of . Demand: q individual buyer, q market. If price goes up, demand will go down, if price goes down, demand will go up: the signs show the inverse of the function. If income goes up, more demand, because more people will buy: some items that make income going up, quantity demand can go down. Substitute good, buy instead of the good you want: if price of tea goes up, quantity demand of coffee goes up. Complement good, buy with original good: if price of complement good goes up, has negative relationship, so demand goes down not as likely to buy coffee if cream is expensive. The rest have positive relationship, so if t; fp; fi; nb price go up, demand increases. Taste does not have an actual measurement advertising now aware of a good you did not know before.

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