Notes On Economics

Submitted By Liviu1
Words: 515
Pages: 3
Open Document
Demand
Demand- Quantities that consumers are willing and able to buy per period of time at various prices
Law of demand- Higher the price= lower the quantity purchased
Demand curve- Shows relationship for a product or service- can be linear or curved
Change in quantity demanded- Change in price of product resulting in the change in quantity demanded
Ceteris Paribus- Demand is the relationship between the price of a product and the quantities demanded
Demand schedule- Amounts per week/time that someone is willing and able to purchase at the various prices.
When there is a surge in demand but limited supplies, prices will increase
Demand curve slopes downwards because- 1) Income effect 2) Substitution effect
When you are more able (Income) and more willing (substitution) you may buy more quantity of it
Price+quantity=Demand
First factor- Demand
Second factor- Income (Normal Products- demand increases due to income increase, Inferior Products- Demand increases due to decrease in income)
Third Factor- Prices of related products (Substitute product- Demand varies with a change in price of a similar product, Complementary product- Purchased together)
Fourth factor- Expectations for the future (Expected prices and income affects our present demand for a product)
Aging population
Supply
Supply- Quantities that producers are willing and able to get to sell per period of time at various prices
Law of Supply- Direct relationship between prices and quantity supplied
Supply curve- Shows relationship for a product or service
Increase in price leads to increase in quantity supplied, movement up supply curve
Decrease in price leads to decrease in quantity supplied, movement downwards
Market supply- Total supply of a product offered by all producers
Lower prices induce consumers to buy more, but supplies cut back output
Company supply+All supply=Market supply
Increase in supply causes supply curve to shift right
Surplus makes producers drop prices to increase sales
Surplus causes prices to fall
Shortage causes prices to rise
Determents in supply
Prices of resources, 2. Business taxes 3. Technology (cost per unit of output affecting profits 4. Production substitutes 5. Future expectations 6. #of suppliers
Increase in supply is caused by
1. Decrease in price of resources 2.
Show More

Related Documents: Notes On Economics

Supply and Demand Essay

Supply and Demand In reflection of this lesson, the team focuses on the simple fact, supply is how much of an item there is, and demand is how many people want to buy something. The laws of supply and demand explain how the market determines the price and quantity of goods to be sold. The team discussed in a meeting how the defining factor to understand is how an increase in supply can affect demand and on the ways that an increase in demand can affect future supply. This is kind of a general definition…

Words 403 - Pages 2

Demand and Supply Essay

Demand and Supply Supply and demand analysis lets the manager see the bigger picture. Market research on the impact of pricing of product on its demand is done by keeping all the other related characteristics constant. To evaluate how many jeans would be sold at alternative prices you keep the consumer income, advertising cost etc constant. This fundamental is known as the law of demand. The price and demand are inversely related. This curve is a downward slope. Demand shifters – consumer income…

Words 625 - Pages 3

Supply and Demand Essay

two supply and demand situation, there were many things to be learned. In this scenario, one acts as the property manager for GoodLife Management, setting the rates and filling vacancies in apartments in the city of Atlantis. There were principles and concepts involving macro and microeconomics, shifts in the supply and demand curve, and effects that influence the equilibrium price and decision making of the apartments in question in the scenario provided. In the week two supply and demand simulation…

Words 896 - Pages 4

Supply and Demand Essay

Elasticity of Demand Price Effect,___ Law of Demand, Moment along the demand curve The high the price the lower the quantity demanded. Non-price Effect ---- Shift Demand to the left and right.. 1. Income of the consumer can shift demand to the right or left…. Ie Demand of normal /luxury shift up when there is increase in income Price of inferior shift down when there is increase in income…. 2. Taste/ preference also shift Demand curve 2. Substitutes /complements. If the price…

Words 294 - Pages 2

The Basics Of Supply And Demand

Basics of Supply and Demand Introduction What are supply and demand? What is the market mechanism? What are the effects of changes in market equilibrium? What are elasticities of supply and demand? ©2005 Pearson Chapter 2 2 Topics to Be Discussed How do short-run and long-run elasticities differ? How do we understand and predict the effects of changing market conditions? What are the effects of government intervention – price controls? ©2005 Pearson Chapter 2 3 Supply and Demand  Supply…

Words 3848 - Pages 16

Supply and Demand Essay

Econ. 175: Microeconomics Olds – Chapter notes: Cowen & Tabarrock Chapter 2: Supply and Demand The Demand Curve (for oil)  A demand curve is a function that shows the different quantities demanded at different prices.  See Fig. 2.1, p. 14. A demand curve can be read two ways: o Horizontally, the curve shows the quantity demanded at a given price. o Vertically, the curve shows the maximum price consumers would pay for a given amount of product.  The curve is “negatively sloped”…

Words 994 - Pages 4

Supply And Demand Simulation

Supply and Demand Simulation Supply and demand is a concept at the heart of both macroeconomics and microeconomics. The fictional apartment management described in the simulation is impacted by numerous economic factors. The microeconomic concept of changes in the supply and demand equilibrium is found in the simulation by affecting the apartment management companies local market. The macroeconomic concept of price elasticity and price ceiling are found in the simulation because they not only…

Words 748 - Pages 3

Supply And Demand Simulation

Supply and Demand Simulation John Ross ECO/365 February 24, 2014 Michael Blakley Supply and Demand Simulation In the simulation I had to address the effects of supply and demand and how it affects the supply curve, the demand curve, and when supply and demand reach a point of equilibrium. I was also able to see what impact a price ceiling has on supply and demand as well as determined the rental rate for two bedroom apartments. Finally, I looked at how the quantity supplied of two-bedroom apartments…

Words 704 - Pages 3

Supply And Demand Simulation

Supply and Demand Simulation This simulation is about a business called GoodLife Management, they are a property management company running the apartment complex’s in the city of Atlantis. The next closes rental company to GoodLife is Oakridge Builders who rent detached homes. The simulation about GoodLife Management reflects supply and demand of the rental properties over a course of seven years. Some of the key terms discussed throughout this simulation are, supply and demand, equilibrium,…

Words 908 - Pages 4

Supply and Demand Essay

The Great Gold Heist of 2013: Exploding Demand & Falling Supply -- Posted Tuesday, 17 September 2013 By Steve St. Angelo, SRSrocco Report No one was prepared for the orchestrated take-down of the price of gold and silver in the first half of 2013. Forecasted supply was generously overstated while demand... grossly under-estimated. Thus, the tremendous imbalance had to be resolved which came to be known as "The Great Gold Heist of 2013." Not only were the investors taken by surprise…

Words 2119 - Pages 9