ECON 101 Lecture Notes - Lecture 3: New Coke, Demand Curve, Used Cars

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27 Feb 2018
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Quantity demanded the amount of a good or service that customers are willing and able to buy at a particular price. Demand the entire relationship between price and quantity demanded. Demand schedule a table that shows the relationship between the price and quantity demanded. Demand curve a curve that graphically represents the relationship between price and quantity demanded. Market demand the demand by all the consumers of a given good or service or service. The law of demand ceteris paribus (holding everything constant), as price increases, quantity demanded decreases. Substitution effect as price increases for one product, switches to other good that are now relatively cheaper. As price increases, one can afford less w/ same level of income. If the price of a good changes, then quantity demanded changes or we move along the demand curve. As income rises, demand will increase (normal goods) For inferior goods, as income rises, demand will decrease i.

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