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4. Demand and Supply Demand--a model of buyer behavior the law of demand other factors affecting demand: income (normal and inferior goods), prices of substitutes/complements, changes in preferences/tastes, expectations, population and demographic changes change in quantity demanded vs. a change in demand which shifts the demand curve? which is due to a change in the price of that good? Supply--a model of seller behavior the law of supply other factors affecting supply: costs of production, prices of complements/substitutes in production, expectations, number of suppliers, productivity change in quantity supplied vs. a change in supply which shifts the demand curve? which is due to a change in the price of that good? Equilibrium quantity demanded= quantity supplied; why is this an equilibrium? how do shifts in the demand curve and/or supply curve affect equilibrium price and quantity? application: given and market and an event, be able to recognize what curves shift, what direction, and what happens to price and quantity 5. Elasticity Price Elasticity of Demand what does it tell us? (If demand elasticity is -3, what does that mean?) how do you calculate it?
Approximate Word count = 704
Approximate Pages = 2.8
(250 words per page double spaced)
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