ECON2105 Chap. 2

Congestion

Ie: social media ________ effect: If more people buy a product, your demand for it decreases.

Network effect

________: If more people buy a product, your demand for it increases.

Individual Demand

________: Law of Demand: When the price rises, Qd decreases.

Market Demand

Aggregating all of the demand (for a single market)

Individual Demand Curve

Graph plotting the quantity of an item someone is willing to buy at each price

Estimating Market Demand

Survey a small part of your customers Add up the total quantity Apply that to the population Plot it

Network effect

If more people buy a product, your demand for it increases

Law of supply

the higher the price, the higher the quantity supplied

benefit

how much pleasure you gain from something

price

Benefit is very similar but NOT the same as ________.

opportunity cost

The highest valued alternative that must be given up to get something.