ECO 108 Lecture Notes - Lecture 1: Demand Curve

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7 Feb 2017

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Economic growth
Economic growth over the years has many factors of change
o Working hours have lessened (65 35hr/wk today)
o Fewer working weeks/year (6% 100% vacationers)
o Retiring at 65 has increased 26% 90%
o Technology has decreased amount of time needed for
housekeeping/maintenance ( > 12 hrs < 3 hrs)
o Leisure time has increased in last 50 yrs (+ 6 hrs)
o Healthcare, goods have increased in quality
o Wealth inequality has been created
As incomes rise, people pull children out of workforce
What causes/sustains growth?
Supply & demand
Law of demand: When price goes up, quantity demanded goes down works
as a function
o Quantity demanded of a good is targeted at a certain population during a
certain time period number that changes when price changes
Amount this group wants to buy during that time, assuming that
nothing else changes the only thing that can change is price
o Demand: A function that does not change with price
Demand only changes when something outside of price changes
demand curve will then shift (D D’) (eg., discovery that coffee
makes you live longer curve shifts up)
Change in price of a different product that is related to curve
product will produce a curve shift (eg., increased price of tea
will shift demand curve of coffee)
Price change effects are already built into the demand curve
Change in price causes change in quantity demanded
movement along existing D curve
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