Monday, February 5, 2018

Demand and Supply

Demand  
  •  The quantities that people are wiling and able to buy at various prices. 
The Law of Demand  
  • There is an increase relationship between price and quantity demanded. 
What causes a change in quantity demanded?
  • Change (Delta) in price.  
What Causes a change in demand?
  • Change in buyers taste
  • Change in number of buyers
  • Change in income
  • Change in prices of related goods
  • Change in expectations
Supply  
  • The quantities that suppliers/producers/sellers are willing and able to produce at various prices.  
The Law of Supply
  • Direct relationship between price and quantity of supply.  
What causes a change in Supply?
  1.  Change in the number of sellers/suppliers/producers
  2. Change in the cost of production
  3. Change in Technology 
  4. Change in Weather
  5. Change in taxes and subsidies
  6. Change in expectations
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2 comments:

  1. Nanki M.February 5, 2018 at 6:40 PM

    Remember to upload the formulas also in your notes. Formulas used for problems such as finding total revenue. ATC,AFC,ATC,TC, MC,TFC,TVC. also mention in your notes the elastic, inelastic, and unitary demand notes we took in class.

    ReplyDelete
  2. Jessica CFebruary 5, 2018 at 8:14 PM

    Great Observation! Thank you, I sure will! I knew I was missing something.

    ReplyDelete

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