Summary Micro-Economics [ECO20A] 2nd year University Notes
33 views 2 purchases
Course
Microeconomics [ECO20A] (ECO20A)
Institution
STADIO (STADIO)
Book
Microeconomics
Our Micro-Economics [ECO20A] 2nd year University Notes offer comprehensive and easy-to-understand summaries of key concepts, with colorful graphs and calculations to help you visualize complex ideas. These notes are perfect for students looking to enhance their understanding of micro-economics and ...
, DEMAND CURVE Linked to CONSUMERS
FLOW concept
NOT wants, needs or requests
Relationship between the quantity of a good that consumers are Movement ALONG the demand curve
willing to buy and the price of the good
quantities of a good that prospective buyers are willing and able to
purchase during a certain period ∆ price of product
[relates to plans of households, firms and other participants in the
economy] = changes the QUANTITY demanded
**always remember to draw
LAW OF DEMAND ↑ price ↓ demand arrows**
Other things being equal (ceteris paribus), the HIGHER THE PRICE OF A
GOOD, the LOWER THE QUANTITY DEMANDED
NEGATIVE RELATIONSHIP (price & demand)
SHIFT of the demand curve
Qd = f (Px; Pg; Y; T; N) ∆ in elements
DETERMINERS Z ∆ in price of RELATED GOODS
Z ∆ in CONSUMER INCOME
Z Price of product (Px) Z ∆ in TASTE
Z Price of related goods (Pg) Z ∆ in HOUSEHOLD SIZE
Z Income of consumers (Y)
= change in DEMAND for product
Z Taste / preference of goods
(T) **always remember to draw
Z Size of household (N) arrows**
Relationship between the quantity of a good that producers are
Movement ALONG the supply curve
willing to sell and the price of the good
quantities of a good or service that producers plan to sell at each
possible price during a certain period ∆ price of product
[planned quantities (that producers or sellers plan to sell at each price]
= changes the QUANTITY supplied
LAW OF SUPPLY ↑ price ↑ supply
**always remember to draw
Other things being equal (ceteris paribus), the HIGHER THE PRICE OF A
arrows**
GOOD, the HIGHER THE QUANTITY SUPPLIED
, COMPLEMENTARY GOODS SUPLEMENTARY GOODS
A COMPLEMENT → GOODS THAT TEND TO BE USED JOINTLY TO A SUBSTITUTE → A GOOD THAT CAN BE USED IN PLACE OF ANOTHER
SATISFY A WANT GOOD TO SATISFY A CERTAIN WANT
RULE OF COMPLEMENTARY GOODS RULE OF SUPLEMENTARY GOODS
↑ PRICE (Good A) ↓ DEMAND (Good B) [decrease in demand] ↑ PRICE (Good A) ↑ DEMAND (Good B) [increase in demand]
↑ PRICE (Good A) = LEFTWARDS SHIFT OF THE DEMAND CURVE ↑ PRICE (Good A) = RIGHTWARD SHIFT OF THE DEMAND CURVE
↓ PRICE (Good A) ↑ DEMAND (Good B) [decrease in demand]
↓ PRICE (Good A) = RIGHTWARDS SHIFT OF THE DEMAND CURVE
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller notedx19. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.90. You're not tied to anything after your purchase.
