ECON10004 Study Guide - Final Guide: Ceteris Paribus, Demand Curve, Inferior Good

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orangemole587

25 May 2018

School

University of Melbourne

Department

Economics

Course

ECON10004

Professor

John Freebairn, Eik Swee

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Quantity demanded = amount that buyers are willing and able to purchase

Law of demand = ceteris paribus, there is a negative causal relationship between the price of a good

and the quantity demanded of the good

Demand schedule = table that shows relationship between price of a good and quantity demanded

Demand curve = downward

sloping line relating price and quantity demanded

Market demand = sum of all individual demands for a particular good or service

Normal good = +ve relationship

○

Inferior good =

ve relationship

○

Income

Substitutes = +ve relationship

○

Complements =

ve relationship

○

Price of related goods

Tastes

Expectations

Number of buyers

Variables that shift the demand curve:

Demand

Friday, 10 March 2017 6:12 PM

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Document Summary

Qua(cid:374)tit(cid:455) de(cid:373)a(cid:374)ded = a(cid:373)ou(cid:374)t that (cid:271)u(cid:455)e(cid:396)s a(cid:396)e (cid:449)illi(cid:374)g a(cid:374)d a(cid:271)le to pu(cid:396)(cid:272)hase. La(cid:449) of de(cid:373)a(cid:374)d = (cid:272)ete(cid:396)is pa(cid:396)i(cid:271)us, the(cid:396)e is a (cid:374)egati(cid:448)e (cid:272)ausal (cid:396)elatio(cid:374)ship (cid:271)et(cid:449)ee(cid:374) the p(cid:396)i(cid:272)e of a good a(cid:374)d the (cid:395)ua(cid:374)tit(cid:455) de(cid:373)a(cid:374)ded of the good. De(cid:373)a(cid:374)d s(cid:272)hedule = ta(cid:271)le that sho(cid:449)s (cid:396)elatio(cid:374)ship (cid:271)et(cid:449)ee(cid:374) p(cid:396)i(cid:272)e of a good a(cid:374)d (cid:395)ua(cid:374)tit(cid:455) de(cid:373)a(cid:374)ded. De(cid:373)a(cid:374)d (cid:272)u(cid:396)(cid:448)e = do(cid:449)(cid:374)(cid:449)a(cid:396)d-slopi(cid:374)g li(cid:374)e (cid:396)elati(cid:374)g p(cid:396)i(cid:272)e a(cid:374)d (cid:395)ua(cid:374)tit(cid:455) de(cid:373)a(cid:374)ded. Ma(cid:396)ket de(cid:373)a(cid:374)d = su(cid:373) of all i(cid:374)di(cid:448)idual de(cid:373)a(cid:374)ds fo(cid:396) a pa(cid:396)ti(cid:272)ula(cid:396) good o(cid:396) se(cid:396)(cid:448)i(cid:272)e. Qua(cid:374)tit(cid:455) supplied = a(cid:373)ou(cid:374)t selle(cid:396)s a(cid:396)e (cid:449)illi(cid:374)g a(cid:374)d a(cid:271)le to sell. La(cid:449) of suppl(cid:455) = (cid:272)ete(cid:396)is pa(cid:396)i(cid:271)us, the(cid:396)e is a positi(cid:448)e (cid:272)ausal (cid:396)elatio(cid:374)ship (cid:271)et(cid:449)ee(cid:374) the p(cid:396)i(cid:272)e of a good a(cid:374)d the (cid:395)ua(cid:374)tit(cid:455) supplied. Suppl(cid:455) s(cid:272)hedule = ta(cid:271)le that sho(cid:449)s (cid:396)elatio(cid:374)ship (cid:271)et(cid:449)ee(cid:374) p(cid:396)i(cid:272)e of a good a(cid:374)d (cid:395)ua(cid:374)tit(cid:455) supplied. Suppl(cid:455) (cid:272)u(cid:396)(cid:448)e = up(cid:449)a(cid:396)d-slopi(cid:374)g li(cid:374)e (cid:396)elati(cid:374)g p(cid:396)i(cid:272)e a(cid:374)d (cid:395)ua(cid:374)tit(cid:455) supplied. Ma(cid:396)ket suppl(cid:455) = su(cid:373) of all i(cid:374)di(cid:448)idual supplies of all selle(cid:396)s. E(cid:395)uili(cid:271)(cid:396)iu(cid:373) = poi(cid:374)t at (cid:449)hi(cid:272)h suppl(cid:455) a(cid:374)d de(cid:373)a(cid:374)d (cid:272)u(cid:396)(cid:448)es i(cid:374)te(cid:396)se(cid:272)t.