ECON101 Lecture Notes - Lecture 5: Ceteris Paribus, Smartwatch, Ramen

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Chapter 3 where prices come from: the interaction of demand and supply. 3. 4 the effect of demand and supply shifts on equilibrium. Demand for smart-watches: how many smart-watches do consumers want to buy, the price of the smart-watches affects demand, other factors, such as prices of other goods, affects demand. Supply of smart-watches: how many smart-watches are producers willing to sell, the price of smart-watches affects supply, other factors, including prices of other goods, affects supply. Market equilibrium determines the price and quantity of smart-watches. To analyze the market for smart-watches, we need a model how buyers and sellers behave. When drawing the demand curve, we hold everything else constant (ceteris paribus. Quantity demanded (q assumption) ( all else equal ) condition the requirement that when analyzing the. Ceteris paribus relationship between two variables such as price and quantity demanded all other variables must be held constant and able to buy at a given price.

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