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BASIC ELEMENTS OF

SUPPLY AND DEMAND- THE DEMAND

SCHEDULE

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INTRODUCTIONINTRODUCTION

We will study:-We will study:- The Demand ScheduleThe Demand Schedule The Demand Curve:-The Demand Curve:- Market DemandMarket Demand Forces behind the DemandForces behind the DemandCurveCurve

 Shifts in DemandShifts in Demand

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RECAPRECAP

• Until now we studied the basic !roblems ofUntil now we studied the basic !roblems ofevery economy"every economy"

•  Mi#ed economies rely on a system ofMi#ed economies rely on a system ofmarkets and !rices to solve these !roblems"markets and !rices to solve these !roblems"

• Dual monarchs$Dual monarchs$

•  Consumers determine what %ets !roducedConsumers determine what %ets !roducedand where it %oes& butand where it %oes& but

• Technolo%ies influence the costs !rices andTechnolo%ies influence the costs !rices andwhat %oods are available"what %oods are available"

The task ahead now is to see in detailThe task ahead now is to see in detailhow this !rocess works in a market economy"how this !rocess works in a market economy"

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THE DEMAND SCHEDULETHE DEMAND SCHEDULE

•

  Common sense sas !ha! !he amoun!o" a #ood $ou#h! $ %eo%le de%ends on&!s %'&ce(

•  A de)n&!e 'ela!&onsh&% $e!*een !hema'+e! %'&ce o" a #ood and !he ,uan!&!demanded %'o.&ded o!he' !h&n#s a'eheld cons!an!(

•  Th&s 'ela!&onsh&% / demandschedule0cu'.e(

•  Le!1s !a+e !he e2am%le o" a demand

schedule "o' co'n3a+es(

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