ECON 1011 Chapter Notes - Chapter 8: Inferior Good, Complementary Good, Substitute Good

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ECON 1011 Full Course Notes
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Market demand for a certain good is the sum of all people"s demands: it is hypothetical what people would wish to buy. The quantity demand (qd) for a good is influenced by: p own price (price of coffee ($/lb), i buyer"s income ($/month) If a positive relationship normal good when a person has higher income they will buy more. How to represent demand: function qd = f(p-, i+, ps+, pc-, t+, fp+, fi+, nb+, specific function. Qd = -p + (1/10)i + (1/2)ps (1/4)pc + 5. If i = 300, ps = 20, pc = 20. Qd = 40 p (ceteris paribus everything except p is constant: create a demand schedule (see lecture outline for table, plot the function or schedule (see lecture outline for graph)

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