Econ- Exam I- Chapter 3

• 1.) many buyers and sellers
• 2.) all firms selling identical product
• 3.) no barriers to new firms entering

shows the relationship between the price of a product and the quantity demanded

demand by all consumers of a given G or S

holding everything constant, when the P of a product falls the quantity demanded will increase

change in the quantity demanded of a G that results from a change in price

change in the quantity demanded of a good that results from the effect of a change in the good's price on consumers' purchasing power

demand increases as income rises, vice versa

demand increases as income falls