ECON 2002.01 Lecture Notes - Lecture 3: Economic Equilibrium, Demand Curve, Price System

15 views2 pages
violetdog372 and 76 others unlocked
ECON 2002.01 Full Course Notes
46
ECON 2002.01 Full Course Notes
Verified Note
46 documents

Document Summary

Markets: institutions that brings buyers and sellers together. Price system: is a name given to the market economy because prices provide considerable information to both buyers and sellers. Buyer is the demand side, seller is the supply side of the market. The maximum amount of a product that buyers are willing to purchase over some period at various prices. For every p there is a q ( change of p, there is a change of q) How does change of price affect the demand . Price change equals the quantity change, not the demand. Horizontal summation of all individual demand curves. Horizontal summation: adding the number of units of products that will supplied and purchased of each price. Non price factors affect demand; they are held constant for drawing a demand curve. Tastes and preferences, income, prices of related goods- substitutes and complements, number of buyers, expectations about future prices.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions