BUS 207 Study Guide - Demand Curve, Economic Surplus, Inferior Good
29 May 2011
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Document Summary
A curve indicating the total quantity of a good all consumers are willing and able to purchase at each possible price, holding the prices of related goods, income, advertising, and other variables constant. Variables other than the price of a good that influence demand are known as demand shifters. For a demand curve, the movement along the demand curve is called change in quantity demanded. Whenever advertising, income, or the price of related goods changes, it leads to a change in demand; the position of the entire demand curve shifts. A rightward shift in demand curve is called an increase in demand, since more of the good is demanded at each price. A leftward shift in the demand curve is called a decrease in demand. Whether an increase in income shifts the demand curve to the r ight or to the left depends on the nature of consumer consumption patterns.
