New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Chapter 3. Demand.

by: Amadeo Notetaker

Chapter 3. Demand. Econ 232

Amadeo Notetaker
GPA 4.0

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Notes ECON 232. Notes on Supply coming soon.
Principles of Economics: Microeconomics
Devereueawax J E
Class Notes
Econ 232
25 ?




Popular in Principles of Economics: Microeconomics

Popular in Economcs

This 4 page Class Notes was uploaded by Amadeo Notetaker on Tuesday January 12, 2016. The Class Notes belongs to Econ 232 at Western Illinois University taught by Devereueawax J E in Spring 2016. Since its upload, it has received 23 views. For similar materials see Principles of Economics: Microeconomics in Economcs at Western Illinois University.

Similar to Econ 232 at WIU


Reviews for Chapter 3. Demand.


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 01/12/16
Chapter 3. Demand It is going to be assumed that we have a perfectly competitive market:   There are many buyers and sellers (One seller/buyer cannot alter the market on its  own).   All firms are selling identical products (so, for example, hamburgers from McDonalds are identical to the ones of Burger King).    There are no barriers to new firms entering the market (as long as they have the  necessary money to enter it).  Demand: overall relationship between price of a good/service and the quantity a buyer is  willing and able to purchase. Demand is based in several factors:  1­ Price. 2­ Taste/Preferences: product features that make the good or service desirable.  3­ Price of substitute (example: Android is the Substitute of Apple). If the prices of the  substitutes (Androids) decrease, less people will buy apple products.  4­ Income: if income increases you are going to be able to afford more expensive  products.  5­ Price of Complementary goods (these are products that are bought together, like the  phone cases or chargers). If the price of apple chargers and cases increase, demand in  iPhones will decrease, for example.  6­ Financing/interest rates: people does not want to spend a lot of money at once.  7­ Expectations about future prices: People waits to buy a product if they know its price  will decrease in a future.  8­ Expectations about future income: demand will increase if people is expecting an  increase in their future income.  9­ Population in the market: the more population, the more people may be willing to buy a product.  Quantity Demanded (Q ):DIs the amount a buyer will purchase at a specific price holding all  the other factors constant.  Law of Demand: If the price of a product decreases, the Q  of the product increases. Thus,  D there is a negative relationship between prince and QD. Demand Schedule: table that shows the relationship between the price of a product and the  quantity of the product demanded. Example with an iPad: Price Q D 1000 $ 0 units 800 $ 1500 units 600 $ 3000 units 400 $ 4500 units Movements and Shifts  ­ Movements: increase or decrease in the Quantity Demanded (Q ). ODcurs only when there is a change in the demanded current price of our primary good.  ­ Shifts: is an increase or decrease in Demand (D). Occurs only when there is a change in  any variables other than Price.  Rightward shift: increase in Demand.  Leftward Shift: decrease in Demand.  Variables that shift Demand:  Income:    ­Normal Goods: a good for which the Demand increases as income increases,  and vice versa. For example, clothes.    ­Inferior Goods: a good for which the Demand increases as income decreases,  and vice versa. For example, McDonalds.   Price of Related Goodes:    ­ Substitutes: a good that competes with another good for consumer purchase.  As the price of the substitute increases, de Demand of the product increases, and vice  versa. For example, if the prince of Samsung cellphones increase, the demand on  iPhones cellphones will increase.    ­ Complements: a good that is jointly consumed with another product. As the  price of the complement increases, the demand of the product decreases, and vice  versa. For example, if the prince of the iPhone chargers increase, the demand on  iPhones will decrease.   Taste and Preferences: If the consumer’s taste increases, the demand of the product  increases, and vice versa.  Population and Demographics: If the population increases, demand increases, and vice  versa.   Expected future prices: If princes are expected to increase in a recent future, the  demand on the product will increase today, and vice versa.  Demand v. Quantity Demanded   Change in Demand: refers to a SHIFT of the Demand curve. It is caused by a Non­ Price related factor.   Change in Quantity Demanded: refers to a MOVEMENT along the Demand curve. Is caused by a price­related factor.  For example:  If the price increases, the quantity demanded decreases: this would represent an upward  movement along the Demand curve.  If the consumer’s taste increase, the Demand increase as well: this would represent a  rightward shift in the Demand curve.   


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Kyle Maynard Purdue

"When you're taking detailed notes and trying to help everyone else out in the class, it really helps you learn and understand the I made $280 on my first study guide!"

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.