, thema ama
Demand :
The
·
of good/service and
quantity a c o n s u m e rs are
willing
able to buy at time period .
a
given price in a
given
Law of Demand : As price increases , demand decreases. Price
decrease , price increases.
P Ceterius Paribus : a
prices
up
go .
requal .
P2 contraction of demand factors a re
unchanged .
M
a
T
↳ new down
Q2 = Q1 - Qb Q
?
Why the downwards slope
i) income effect :
you
can't afford it
ii) substitution effect :
price goes up , you find
something
cheaper .
Love vs peps .
P ·
other factors than can affect
demand other than price :
P
.
------------
r
i D3 Du
D2
Population
Q31- Q1 - Q2 Q
Advertising
income ↑ demand Substitutes Prices
↑
normal
goods : cars, brands, J Income
clothes ,
fine dining etc . Fashion/Taste
inferior goods : fast food , public transets. Interest Rates
↳ income t demandt Compolementary Price
, Supply :
·
The quantity of a good/service producers are and able
willing
to produce at price given time period .
given
a in a
Law of Supply : Price increases , supply increases. Vice versa .
P
5
P2 ... -... --
I
--
extension of supaa
↑ 4-
Pl
py
↓
.........
......
Q35Q1 -
> Q
Why ?
·
due to profit motive
factors that can effect supply
P 43
5 other than price :
S2
P .................
, -
· ! I
-
-
Productivity
Indirect Tax
Q3FQ1 - Q2
No of Firms
S .
=
barrier of entry Technology
more firms S. -
> 32 Subsidy
less firms 3153 Weather ret Transport
Production
Labour
C ost of
-
-
0. 1
Raw/utility regulations
↳
Materials
If any of these increase :
5 >
-
33 . If they decease :
S1 - 32
Demand :
The
·
of good/service and
quantity a c o n s u m e rs are
willing
able to buy at time period .
a
given price in a
given
Law of Demand : As price increases , demand decreases. Price
decrease , price increases.
P Ceterius Paribus : a
prices
up
go .
requal .
P2 contraction of demand factors a re
unchanged .
M
a
T
↳ new down
Q2 = Q1 - Qb Q
?
Why the downwards slope
i) income effect :
you
can't afford it
ii) substitution effect :
price goes up , you find
something
cheaper .
Love vs peps .
P ·
other factors than can affect
demand other than price :
P
.
------------
r
i D3 Du
D2
Population
Q31- Q1 - Q2 Q
Advertising
income ↑ demand Substitutes Prices
↑
normal
goods : cars, brands, J Income
clothes ,
fine dining etc . Fashion/Taste
inferior goods : fast food , public transets. Interest Rates
↳ income t demandt Compolementary Price
, Supply :
·
The quantity of a good/service producers are and able
willing
to produce at price given time period .
given
a in a
Law of Supply : Price increases , supply increases. Vice versa .
P
5
P2 ... -... --
I
--
extension of supaa
↑ 4-
Pl
py
↓
.........
......
Q35Q1 -
> Q
Why ?
·
due to profit motive
factors that can effect supply
P 43
5 other than price :
S2
P .................
, -
· ! I
-
-
Productivity
Indirect Tax
Q3FQ1 - Q2
No of Firms
S .
=
barrier of entry Technology
more firms S. -
> 32 Subsidy
less firms 3153 Weather ret Transport
Production
Labour
C ost of
-
-
0. 1
Raw/utility regulations
↳
Materials
If any of these increase :
5 >
-
33 . If they decease :
S1 - 32
