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Three main economic theories.
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- Words:
- 778
- Submitted:
- Tue Sep 30 2003
... Economic Theory In this Coursework there are three main economic theories which I am going to use and they are: Demand Demand is the quantity of goods and services that will be bought at any given price over a period of time. The Law of Demand states that the lower the price the higher the quantity demanded, and the higher the price the lower the quantity demanded. Demand is related to Price Here is an example of how price and demand are related and how it is shown on a diagram Demand Schedule Price (p) Quantity Demanded 80 1 70 2 60 3 50 4 Diagram The demand curve slopes downwards from left to the right because of the law of demand. A movement along the demand curve is caused by a change in the price itself. Demand and Income Income also affects the level of demand for a good. Demand for a good rises when income rises and falls as income falls. Diagram Explanation of Diagram As income rises so
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