No Free Lunch: Economics for a Fallen World: Third Edition, Revised

Chapter Three: Demand 64 DESIRED LEARNING OBJECTIVES At the conclusion of this chapter, the student should be able to... § § Relate how the concept of consumer demand is inextricably linked to opportunity cost § § Describe why relative prices drive individual choice § § Define the Law of Demand: As price of a good goes down, its quantity demanded will increase § § Contrast a change in demand from a change in quantity demanded § § List the factors that cause a change in demand § § Explain why changes on the margin are important in economics § § Derive a market demand curve from individual demand curves § § Describe why consumer surplus illustrates the consumer’s gain from trade § § Relate demand for a good to its elasticity