MGEA02H3 Chapter Notes -Demand Curve, Normal Good, Inferior Good

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meow1234

25 Sep 2022

School

UTSC

Department

Economics for Management Studies

Course

MGEA02H3

Professor

Jack Parkinson

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MGEA02H3 Full Course Notes

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Competitive market: market where there are many buyers and sellers of the same good or service: goods: tangible. Substitutes: goods that may serve in a similar function: normal goods: the demand for certain goods increases when consumer income. Complements: goods that in some senses are consumed together rises. Inferior goods: the demand for certain goods decreases when consumer income rises. When the price of a substitute rises, then the demand for the original good increases. When the price of a complement falls, then the demand for the original good increases. When income rises, then the demand for normal good increases. When the price of a substitute falls, then the demand for the original good decreases. When the price of a complement rises, then the demand for the original good decreases. When income falls, then the demand for normal good decreases. When income falls, then the demand for inferior good increases.

Related Questions

Any point along the market demand curve shows

1. the quantity of the good that firms would be willing and able to supply at a specific price

2. the relationship between the price of the good and total quantity demanded at a series of prices

3. the opportunity cost of supplying a given quantity of goods to the market

4. the quantity of the good that consumers would be willing and able to purchase at a specific price

5. how population changes affect the quantity demanded at a specific price

purplewhale646

18) Equilibrium in the market is attained when: there a) b) there are no dramatic changes in the market over time the laws of supply and demand interact to set the price and quantity of a product at which buyers and sellers agree suppliers are willing to produce the quantity demanded consumers are willing to pay the price being charged

The market demand curve

a. slopes upward.

b. is found by vertically adding the individual demand curves.

c. represents the sum of the quantities demanded by all the buyers at each price of the good.

d. represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good.

When we move along a given demand curve,

all nonprice determinants of demand are held constant.

only price is held constant.

all determinants of quantity demanded are held constant.

d. income and price are held constant.

When the price of a good or service changes,

	a.	there is a movement along a given demand curve.
	b.	the demand curve shifts in the opposite direction.
	c.	the supply curve shifts in the opposite direction.
	d.	the demand curve shifts in the same direction.

MGEA02H3 Chapter Notes -Demand Curve, Normal Good, Inferior Good

MGEA02H3 Full Course Notes

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