Last edited by mr fantastic; October 18th, 2009 at 01:27 AM.
Reason: m --> r and water is added, removed excessive smiley and removed superfluous url tags
Generally
Fred will change his demand along the demand curve with a change in price, holding all else constant.
If there is a change in other things, such as the price of a complement/substitute good, or research shows that chicken is good for you but red meat isn't etc. Then the whole demand curve will shift for a given price point and he will demand more/less depending on the direction of the shift in the demand curve
Next one, shortage & surplus. Shouldn't shortage the price rises up bcos the quantity demanded > supplied. In reality this happens always, right ?
Same goes to surplus
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