BUSI 2050U Lecture Notes - Demand Curve, Equilibrium Point

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10 Nov 2013
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X axis is usually the price and the y axis is usually the quantity. Lower price higher the demand and vice versa. The lower price and demand higher is known as a demand curve. A change in demand does not = a change in quantity demand. Change in demand usually reflects in the x-axis. Change is supply/quantity demand reflects in the in the demand curve. Change to the right /\ in demand change in the left \/ in demand. Substitute- two goods are substitutes if a decrease in the price of one leads to a decrease in demand for the other (or vice versa). Eg: coke price goes up pepsi demand goes up. Complements- two goods are complements if a decrease in the price of one good leads to an increase in the demand for the other (or vice versa). Eg: consumers often have to buy goods together. An increase in price of gasoline will decrease the demand for suvs.

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