What you’ll learn to do: explain the determinants of demand
Imagine that Ben & Jerry’s has a promotion to discount the price of their ice cream next summer. What do you think will happen to the amount of Ben & Jerry’s ice cream that people will want to buy? The likely result is that people will buy more ice cream. By the same token, if the price of the ice cream were to rise next summer, then ice cream purchases would likely fall. In this section, you will examine this “law of demand” and see why this simple concept is essential to understanding economics.
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