Chapter 3 - Demand, Supply, and Price
12:47 AM What is quantity demanded?
What are two important concepts about quantity demanded?
What are some variables that influence the amount of some product that consumers in a
relevant market want to buy in a given time period?
Relationship b/w quantity demanded of a product and its price
Why does this relationship seem reasonable?
•Quantity demanded of a product - amount of a good/service that consumers want to buy
during some time period
•Quantity demanded - desired purchases
•Quantity bought/Quantity exchanged - actual purchases
•Two important things about this concept: desired quantity and flow of purchases
o Desired quantity is the amount that consumers want to buy when faced with a
particular price of the product, other product's prices, their own incomes, their own
o If not enough quantity is available, the amount that consumers want to buy can
exceed the amount that they actually buy
•Example: Standing in line to buy tickets to a show, only to realize that the
tickets are sold out before you get to the front of the line
o Flow of purchases can refer to 1 million units per day, 7 million units per week,