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HYPOTHESIS: A reasonable proposition about the workings of the world that's inspired or implied by a theory and which may or may not be true. An hypothesis is essentially a prediction made by a theory that can be compared with observations in the real world. Hypotheses usually take the form: "If A, the also B." The essence of the scientific method is to test, or verify, hypotheses against real world data. If supported by data over and over again, hypotheses become principles.

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Lesson 5: Market Demand | Unit 4: Determinants Page: 14 of 20

Topic: Shifters: Increase <=PAGE BACK | PAGE NEXT=>

Demand determinants shift the demand curve.
  • The demand curve is drawn assuming that only price and quantity change. The determinants are assumed to be constant.
  • A change in one of the determinants can cause:
  • An increase in demand, a rightward shift, which means that for any price, for every price, buyers are willing and able to buy more of the good.

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CHANGE IN QUANTITY SUPPLIED

A movement along a given supply curve caused by a change in supply price. The only factor that can cause a change in quantity supplied is price. A related, but distinct, concept is a change in supply.

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The portion of aggregate output U.S. citizens pay in taxes (30%) is less than the other six leading industrialized nations -- Britain, Canada, France, Germany, Italy, or Japan.
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