ECON 106 1st Edition Lecture 7Outline of Last Lecture I. Demand ScheduleII. SlopeIII. Production PossibilitiesIV. Opportunity CostOutline of Current Lecture I. CapitalismII. DemandIII. Individual DemandIV. Market DemandV. Aggregate DemandVI. Firm DemandCurrent LectureCapitalism- Reliance on markets and prices - In this system, there must be freedoms to support activities- Freedoms such as, obtaining recourses you wish to use in production and starting a business - Self-interest is an important component - Private property – private ownership of capital - Active but limited role for government - Competition between and among firmsDemand- The willingness and ability to purchase goods and services- The factor inside the market that affects demand is price - Factors that affect demand outside the market (demand shifters):o Consumer income – normal good (+), inferior good (-)o Tastes/preferences (+,+)o Number of consumers (+)- Normal good – demand goes up or down as income goes up or down- Inferior good – demand goes down as income goes up, demand goes up and income goes down Individual DemandThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- One particular individual, one particular good or serviceMarket Demand- All individuals, one particular good or serviceAggregate Demand- All individuals, all goods and services Firm demand - Demand for the output of a particular firm, as seen by the firm