Demand, Elasticity of Demand and Elasticity of Supply
After studying this chapter, you should be able to understand:
- Quantity demanded of a good is the amount of that good demanded at a particular price over a certain time.
- According to the law of demand, there exists a negative relationship between the quantity demanded of a good and the price of the good.
- A change in demand or a change in the quantity demanded of the good is a movement, which occurs along the demand curve and is caused by a change in the price of the good, ceteris paribus.
- A shift in the demand curve is caused by a change in any of the factors, which influence the demand other than the price of the good itself. It is important to note that there is a shift of the ...