ECON 102 Chapter Notes - Chapter 3: Demand Curve, Normal Good
Document Summary
Change in quantity demanded- when the price of a good changes, this leads to a price in quantity demanded which is shown by moving upward or downward along the same demand curve. Change in demand- when any other determinant of demand changes, this leads to a change in demand which we show by shifting the entire demand curve inward or outward. Goods are either substitutes if one can be used in place of the other or complements if they are generally used together. Goods are either normal goods- ones you buy more of as your income rises- or inferior goods- good that we buy less of as our income rises. A relationship showing the quantity of a good that a seller is willing and able to bring to market at each price at a given point in time. Statement 1: direct relationship between price and quantity supply. Surplus- excess of quantity supplied over quantity demanded at any price above equilibrium.
