ECON 200 Lecture 7: Econ 200,University of Arizona,Readings-Notes(p7)

• School: University of Arizona
• Department: Economics
• Course: ECON 200
• Professor: ALL

Document Summary

Market demand - the sum of all the individual demands for a particular good or service. We sum the individual demand curves horizontally to obtain the market demand curve. The market demand curve shows how the total quantity demanded of a good varies as the price of the good varies, while all other factors that affect how much consumers want to buy are held constant. Other things besides price can shift demand such as health benefits etc. Any change that increases the quantity demanded at every price shifts the demand curve to the right and is called an increase in demand. Any change that reduces the quantity demanded at every price shifts the demand curve to the left and is called a decrease in demand. If the demand for a good falls when income falls, the good is called a normal good. If the demand for a good rises when income falls, the good is called an inferior good.