I think I'm going to fail my economics mid-term

[BlancoNino]

My book is saying that if there is an increase in quantity demanded, the price goes down. I thought just the opposite was true. man, I'm confused.

 

[FleshLight]

That's what the law of demand states.

 

[b0mbrman]

If the quantity demanded goes up, it means supply has shifted to the right, and price goes down.
What you're thinking of is if demand goes up and supply stays constant, price goes up.

 

[BlancoNino]

Originally posted by: b0mbrman
If the quantity demanded goes up, it means supply has shifted to the right, and price goes down.
What you're thinking of is if demand goes up and supply stays constant, price goes up.

Yeah I just figured that out. If the price goes down (for whatever reason), then the quantity demanded will go up. I was reading the graph backwards as if the demand goes up, then the price gets lowered. Lack of sleep FTL.

 

[UncleWai]

There needs to be a way to explain that concept more clearly. So many people including myself at one point get confused because of the way it's written.

 

[Jeff7]

Originally posted by: UncleWai
There needs to be a way to explain that concept more clearly. So many people including myself at one point get confused because of the way it's written.

Draw out the supply and demand curves.

A change in quantity demanded moves your focus along the line, but the line doesn't go anywhere.

A change in demand shifts the entire line to the left or right.

 

[lytalbayre]

English skills.... If there is an increase in quantity , not if there is an increase in demand

I'm sure that statement was written deliberately to confuse

 

[hdeck]

no, it's a basic economic principle. anyone who has taken 101 knows the laws of supply and demand. just draw the graph and everything answers itself.

 

[slikmunks]

econ is easy. like hdeck said... draw the simple supply and demand graph, and everything else is basically some sort of derivative off that graph... learn that and you'll breeze through econ

 

[Chryso]

Macro or micro econ?

 

[UncleWai]

Originally posted by: slikmunks
econ is easy. like hdeck said... draw the simple supply and demand graph, and everything else is basically some sort of derivative off that graph... learn that and you'll breeze through econ

That's like saying physics is easy because I know f=ma

 

[Fayd]

Originally posted by: slikmunks
econ is easy. like hdeck said... draw the simple supply and demand graph, and everything else is basically some sort of derivative off that graph... learn that and you'll breeze through econ

then you get to other econ courses... and suddenly you go an entire semester without seeing that simple supply demand graph.

oh how i miss the simple market graph


<---- econ major.