ECN 104 Chapter Notes - Chapter 4: Demand Curve, Oligopoly, Market Power
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Market with a large number of sellers, each selling products that are slightly different from competitors: quantity demanded: amount of a good that buyers are willing to purchase. Increase in number of buyers increase in qd demand curve shifts to the right. Decrease in number of buyers decrease in qd demand curve shifts to the left: income: normal goods: a good in which the increase in income leads to an increase in demand; positively related (no effect on price). www. notesolution. com. Inferior goods: a good in which the increase in income leads to a decrease in demand; negatively related (no effect on price): price of related goods. substitute: situations where the increase in the price of one good leads to an increase in demand of another. If people expect their incomes to rise, their demand for meals at expensive restaurants may increase now.