ECO 212 Lecture Notes - Lecture 1: Gdp Deflator, Demand Curve, Equilibrium Point
13 Jul 2016
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Quantity demanded: amount of a good that buyers are willing and able to purchase. Law of demand: says quantity demanded of a good falls when price of good rises. Demand schedule: table shows relationship btw price of goods & quantity demanded. Demand curve: graph of relationship between price of good and quantity demanded. Market demand refers to the sum of all individual demands for a particular good or service; graphically, it is the sum of the individual demand curves horizontally. A change in demand results in a shift in the demand curve, either to the left (decrease in demand) or right (increase in demand); caused by any change that alters the quantity demanded at every price. Quantity supplied: the amount of a good that sellers are willing/plan to sell. Law of supply: says quantity supplied of a good rises when the price of the good rises. Supply schedule: table showing relationship btw price & quantity supplied of goods.
