Microeconomics 4
Individual and Market Demand
Individual and Market Demand
Kartei Details
Karten | 18 |
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Sprache | English |
Kategorie | VWL |
Stufe | Universität |
Erstellt / Aktualisiert | 17.11.2012 / 13.03.2015 |
Lizenzierung | Kein Urheberrechtsschutz (CC0) |
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Individual demand curve
Curve relating the quantity of a good that a single consumer will buy to its price.
An inferior Good
An increase in a person’s income can lead to less consumption of one of the two goods being purchased.
Recall this
Two goods are substitutes if an increase in the price of one leads to an increase in the quantity demanded of the other.
Two goods are complements if an increase in the price of one good leads to a decrease in the quantity demanded of the other.
Two goods independent if a change in the price of one
good has no effect on the quantity demanded of the other.
effects of a fall in price
1. Consumers will tend to buy more of the good that has
become cheaper and less of those goods that are now
relatively more expensive.
2. Because one of the goods is now cheaper, consumers
enjoy an increase in real purchasing power.