Devry ECON312 Week 2 Discussion Latest 2022 January

1. Law of Demand Explain the law of demand. Why does a demand curve slope downward? Illustrate with an example.
2. Determinants of Demand What are the determinants of demand? What happens to the demand curve when any of these determinants change? Distinguish between a change in demand and a movement along a fixed demand curve.
3. Rationing Function of Prices An important concept in demand and supply is the rationing function of prices. What do economists mean when they say, “price floors and ceilings stifle the rationing function of prices and distort resource allocation"? Explain with an appropriate example.

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