ECON 200 Lecture Notes - Lecture 11: Demand Curve, Inferior Good, Normal Good
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Keeping all other forces constant, if the price of a good rises, the quantity demanded will fall; and vice versa. Law of demand; market demand for a good: On a given demand schedule, quantity changes as a result of change in price. This is the effect of price on quantity, or, price effect . The price effect is show primarily via the slope of the demand curve above. Price is not the only force that affects how much consumers will purchase of a good. The other influencing forces/factors on the quantity of a good people buy include: When the price of a good rises (keeping all other forces constant), the quantity demanded falls, and vice versa. This is called a change in the quantity demanded of the good. When a force other than the price of a good changes, the whole demand behavior shifts (its location changes). This is called a change in the demand for the good.