MGEA01H3 Chapter Notes - Chapter 3: Demand Curve, Inferior Good, Normal Good
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MGEA01H3 Full Course Notes
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Mgea01 chapter 3 supply & demand: a model of a competitive market. Competitive market: a market in which there are many buyers and sellers of the same good or service, none of whom can influence the price at which the good or service is sold. Supply and demand model: is a model of how a competitive market behaves/works. Demand schedule: shows how much of a good or service consumers will want to buy at different prices. Quantity demanded: the actual amount of a good or service consumers are willing and able to buy at some specific price. Demand curve: the graphical representation of the demand schedule. It shows how much of a good or service consumers want to buy at any given price. Law of demand: a higher price for a good or service, other things equal, leads people to demand a smaller quantity of that good or service.