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INDIRECT: The mathematical notion that two variables change in the opposite directions, that is, an increase in X goes with a decrease in Y, or a decrease in X goes with an increase in Y. The alternative to an indirect relation is a direct relation, in which an increase in one variable goes with an increase in the other. Indirect relations are graphically illustrated by negatively-sloped curves, a common example being the demand curve.
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Lesson 9: Consumer Demand | Unit 1: Demand Theory
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Page: 4 of 22
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- Recall that:
- The law of demand states that an inverse relation exists between demand price and the quantity demanded, ceteris paribus.
- According to the law of demand, the demand price that buyers are willing to pay for a good varies inversely with the quantity demanded.
More Than Willingness - Demand depends on more that just the willingness to buy goods:
- Buyers must also be able to buy.
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PERFECT COMPETITION, SHORT-RUN SUPPLY CURVE A perfectly competitive firm's supply curve is that portion of its marginal cost curve that lies above the minimum of the average variable cost curve. A perfectly competitive firm maximizes profit by producing the quantity of output that equates price and marginal cost. As such, the firm moves along its positively-sloped marginal cost curve in response to changing prices.
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BEIGE MUNDORTLE [What's This?]
Today, you are likely to spend a great deal of time flipping through the yellow pages seeking to buy either a coffee cup commemorating next Thursday or a replacement remote control for your stereo system. Be on the lookout for strangers with large satchels of used undergarments. Your Complete Scope
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Approximately three-fourths of the U.S. paper currency in circular contains traces of cocaine.
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"The greatest things ever done on Earth have been done little by little. " -- William Jennings Bryan
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AAO Authorized Acquisition Objective
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