Introduction to Microeconomics Econ1000 chapter2:Coordinating Demand and Supply
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Course
ECO1000 (ECON1000)
Institution
York University (Ebor
)
Market Demand for Water
Two Ways to Read a Demand Curve:Demand Curve – Read Over and Down
Two Ways to Read a Demand Curve:Marginal Benefit Curve – Read Up and Over
WHAT CAN CHANGE DEMAND?
Quantity demanded changes only with a change in price.
All other influences on consumer choice ch...
Your willingness to buy a product or
service depends on your ability to pay,
comparative benefits and costs, and the
availability of substitutes.
,• Preferences
your wants and their intensities
• Demand
consumers’ willingness and ability to pay for
a particular product or service
• For any choice, what you are willing to pay or
give up depends on
– Cost
– Availability of substitutes
, SMART CHOICES ARE MARGINAL CHOICES
Key 2 states, “Count only additional
benefits and additional costs.” Additional
benefits mean marginal benefits – not total
benefits – and marginal benefits change the
circumstances.
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