SS 141 Chapter Notes - Chapter 3: Effective Demand, Shortage, Inverse Relation
Document Summary
Demand-amount of good or service that consumers are willing and able to pay for it at any price. If you can"t pay for that good no effective demand. Price-when buyer pays for a specific good or service. Quantity demanded (qd)-specific (total) number of units purchased at a price. Ex: when the price of adidas goes down, the demand for the pair of sneakers increases. Inverse relationship between price and qd=law of demand: assumes all other variables affect demand, price increases, qd decreases, price decreases, qd increases. Demand schedule- table that shows the quantity demanded at each price. Price (vertical axis) and x axis, quantity (horizontal axis) y axis. Shift in demand-change in economic factor other than price that causes a different quantity to be demanded at every price (factors^) Ceteris paribus-latin term referring to everything else being equal (on curve) Supply-amount of good or service producer is willing to supply at each price.
