Monday, January 19, 2015

Supply and Demand

Demand: 
The quantities that people are willing and able to buy at various demanded.

The Law of Demand - an inverse relationship between price and quantity demanded

Demand Schedule and Demand Curve - displays the relationship of price and quantity demanded


Increase in demand - shift to the right
Decrease in demand - shift to the left

What causes a "change in quantity"?
change in price 

What causes a "change in demand"?

  1. change in buyer's taste (advertising)
  2. change in the number of buyers (population)
  3. change in income A. Normal goods - gods that buyers buy more of when their income rises. B. Inferior goods - goods that buyers buy less of when their income rises. 
  4. change in the price of related goods. A. Substitute goods - goods that serve roughly the same purpose to buyers (Coca - Cola and Pepsi) B. Complimentary goods - goods that are often consumed together (fries and ketchup)
  5. change in expectations - the future

Supply:
The quantities that producers or sellers are willing and able to produce or sell at various prices

Law of Supply - There is a direct relationship between price and quantity supply (price increases, quantity increases)

Supply Schedule and Supply Curve



What causes "change in supply"?
change in price

What causes a "change in supply"?


  1. change in weather
  2. change in technology
  3. change in taxes or subsidies
  4. change in cost of production
  5. change in number of sellers
  6. change in expectations

1 comment:

  1. Excellent presentation, it is colorful and it stands out. I like the visual representations that you put out, for it's large and clear to see. However, the texts seem to be lackluster after your points. Try capitalizing it to make it seem more interesting!

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