King Rat (gkr) wrote,
King Rat

Eco 200: Demand (curve) vs. amount demanded

(individual) Coffee Prices Sink as Demand Wanes. Does that newspaper headline use the word demand correctly? Would you expect those falling prices to be associated with more or less coffee consumption?

The headline does. If it were using it incorrectly (i.e., they meant amount demanded), the prices would be rising. A lower price indicates an increase in the amount demanded. In this case, the demand curve for coffee is changing, meaning that some sort of societal change is causing people to drink less coffee (e.g., switching to low-carb coffee) even though the price of coffee dropped.

I'm not 100% certain on this yet. I understand the two terms. But some sort of dyslexia seems to take hold though when I have to apply them and I get them confused. My application just won't look right to me.

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