ECON 104 Study Guide - Demand Curve, Inferior Good, Normal Good
Document Summary
Mcbr chapter 3 review questions: list five basic determinants of market demand that could cause demand to decrease. (the text mentions seven possibilities. ) Answer: a normal (superior) good is one whose demand varies directly with income as is true for most goods and services the more income one earns, the more one is willing and able to buy. However, there are exceptions, called inferior goods, whose demand varies inversely with income. Answer: a change in demand is a shift in the entire demand curve either to the left (a decrease in demand) or to the right (an increase in demand). Demand refers to the entire schedule or curve. By contrast, a change in quantity demanded is a movement along an existing demand curve or schedule from one price-quantity combination to another. A change in product price causes the change in quantity demanded: list six basic determinants of market supply.
