The document discusses the key factors that influence demand: 1) real income, where demand increases for normal goods as income rises but decreases for inferior goods, 2) prices, where as the price of a good rises the quantity demanded falls according to the law of demand, and 3) tastes, expectations, the number of buyers in the market, and non-price factors like population growth can all shift the demand curve to impact the quantity of a good demanded at each price point.
The document discusses the key factors that influence demand: 1) real income, where demand increases for normal goods as income rises but decreases for inferior goods, 2) prices, where as the price of a good rises the quantity demanded falls according to the law of demand, and 3) tastes, expectations, the number of buyers in the market, and non-price factors like population growth can all shift the demand curve to impact the quantity of a good demanded at each price point.
The document discusses the key factors that influence demand: 1) real income, where demand increases for normal goods as income rises but decreases for inferior goods, 2) prices, where as the price of a good rises the quantity demanded falls according to the law of demand, and 3) tastes, expectations, the number of buyers in the market, and non-price factors like population growth can all shift the demand curve to impact the quantity of a good demanded at each price point.
inferior good LAW OF DEMAND goods used together 2. Prices Price => quantity demanded price of 1 good Complements of Related Goods => demand for the other DEMAND CURVE SHIFT IN goods equally able to DEMAND satisfy a demand Substitutes downward-sloping line price of 1 good relationship between price 3. Tastes => demand for the other and quantity demanded 4. Expectations DEMAND Inverse/ Indirect relationship 5. Number of Buyers
SHIFT Sum of all individual demands
CHANGE IN Caused by NON-PRICE DEMAND MARKET DEMAND the summation of all factors the individual demand curves Market demand curve CHANGE IN MOVEMENT QUANTITY CETERIS PARIBUS DEMANDED Caused by a change in PRICE