Unit One: Notes and Need-To-Knows 1/12/2015

Unit One: Demand

Demand: quantities that people are willing and able to buy at various prices

Law of Demand: there is an inverse relationship between price and demand

Causes of Change in Demand:

1. Change in buyers taste (advertisement)
2. Change in # of buyers (population)

3. Change in income (normal goods: buyers buy more when 

 income rises/ inferior goods: bought less when income rises)
4. Change in price of related goods (Substitute Goods: goods that serve roughly same purpose to buyers / Complementary Goods: goods that are consumed together) 
5. Change in Expectations