ECO 111 Lecture Notes - Lecture 2: Demand Curve, Yottabyte, Normal Good
15 Dec 2016
School
Department
Course
Professor
Document Summary
A schedule or a curve that shows the maximum amounts of a product that consumers are willing and able to purchase at each of a series of possible prices during a specific period of time. Shows the quantities of a product that will be purchased at various prices. Law of demand: the principle that, other things equal, and increase in a product"s price will reduce the quantity of it demanded, and conversely for a decrease in price, effective demand. Being both willing and able to purchase a good or service: inverse relationship between price and quantity demanded. People buy more of a product at a low price than at a high price. The law of diminishing marginal utility- the principle that as a consumer increases the consumption of a good or service, the marginal utility obtained from each additional unit of the good or service decreases.
