01:220:102 Lecture Notes - Lecture 4: Demand Curve, The Graphic, Economic Equilibrium

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Published on 18 Oct 2018
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ECON 102 Lecture 4 - Supply and Demand
Competitive Market:
- A competitive market has many buyers and sellers of the same good or service,
none of whom can influence the price
- Its behavior is shown by the supply demand model
Demand Curve:
- A model which shows the quantity demanded at various price levels
- The slope is usually negative which reflects how demand goes up when price
goes down
Quantity Demanded:
- The quantity that buyers are willing and able to purchase at a certain price level
- Change in demand is not the the same as change in quantity demanded
- The graphic below shows the difference between a change in demand and a
change in quantity demanded portrayed by a demand curve Elgawly PPT; Slide 7
The Law of Demand:
-The law of demand states that quantity purchased varies inversely with
price
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