ECON102 Chapter Notes -Demand Curve, Marginal Cost, Marginal Utility

• School: University of Waterloo
• Department: Economics
• Course: ECON102
• Professor: Eva Lau

Document Summary

Demand quantity demanded: the amount that consumers plan to buy in a given time period at a particular price not the same as the quantity actually bought. Demand: want it, can afford it, plan to buy it. Measured as an amount per unit time. Demand: the entire relationship between the price of a good and the quantity demanded of that good. Willingness and ability to pay is a measure of marginal benefit as the quantity available increases, the marginal benefit of each additional unit falls and the highest price that someone is willing and able to pay also falls. Supply supply: has the resources and technology, can profit from producing it, plans to produce and sell it quantity supplied: the amount that producers plan to sell during a given time period at a particular price. Because marginal cost increases (ppf and opportunity cost) 03 demand and supply shift left: decrease; shift right: increase.