determinants of supply and demand. factors that change the quantity demanded or supplied

DETERMINANTS OF SUPPLY AND DEMAND

Upload: archibald-hampton

Post on 11-Jan-2016

213 views

Category:

Documents

0 download

Report

Download

Embed Size (px):

TRANSCRIPT

DETERMIN

ANTS O

SUPPLY

AND D

EMAND

DETERMINANTS OF SUPPLY AND DEMANDFactors that change the quantity demanded or supplied

DETERMINANTS OF DEMAND

1.Consumer preferences2. Market Size3. Income4. Price of related goods5. Consumer Security

Page 4: DETERMINANTS OF SUPPLY AND DEMAND. Factors that change the quantity demanded or supplied

CONSUMER PREFERENCES

Tastes changeWhat are some examples of tastes changing and therefore changing the amount of a product that is demanded?

Page 5: DETERMINANTS OF SUPPLY AND DEMAND. Factors that change the quantity demanded or supplied

MARKET SIZE

The amount of people to buy the product may change

What is a situation where this may occur?

Page 6: DETERMINANTS OF SUPPLY AND DEMAND. Factors that change the quantity demanded or supplied

INCOME

As the average income goes up or down, sales for products will also change

What is an example of this happening?

Page 7: DETERMINANTS OF SUPPLY AND DEMAND. Factors that change the quantity demanded or supplied

PRICES OF RELATED GOODS

Substitutes- products easily replaced with others

Complements- products purchased together

What are some substitutes and complements?

Page 8: DETERMINANTS OF SUPPLY AND DEMAND. Factors that change the quantity demanded or supplied

CONSUMER SECURITY

If you feel good or anxious about future- it will affect how you spend money

Give examples

Page 9: DETERMINANTS OF SUPPLY AND DEMAND. Factors that change the quantity demanded or supplied

DETERMINANTS OF SUPPLY1. Technological

improvement2. Resource prices3. Taxes and subsidies4. Competition

Page 10: DETERMINANTS OF SUPPLY AND DEMAND. Factors that change the quantity demanded or supplied

TECHNOLOGICAL IMPROVEMENTIf productivity can increase

Page 11: DETERMINANTS OF SUPPLY AND DEMAND. Factors that change the quantity demanded or supplied

RESOURCE PRICES

If prices of what goes into the product go up or down

Steel shortage?

Page 12: DETERMINANTS OF SUPPLY AND DEMAND. Factors that change the quantity demanded or supplied

TAXES AND SUBSIDIES

Subsidy- monetary grant to a business to help ease production or develop a new product

Taxes- add to production costs

Page 13: DETERMINANTS OF SUPPLY AND DEMAND. Factors that change the quantity demanded or supplied

COMPETITION

More producers enter the market

dachpian.weebly.com · 2018. 8. 23. · At that price, the quantity demanded is much smaller than at the equilibrium price. Quantity demanded drops from 15 000 to 5000 bags per month

Chapter 4 - Demand What is Demand? Law of Demand Determinants of Demand Demand v. Quantity Demanded Elasticity of Demand

The Law of Demand - Pearson · PDF file2.3 Describe the relationship between price and quantity demanded, ... 2.4 Explain the difference between a change in quantity demanded and a

Increase in Demand D1D1 D2D2 14 $20 20 Price Quantity -more quantity is demanded at each price - caused by a factor other than price -more quantity is

Several factors will cause the quantity demanded at every price to change Quantity Price Demanded $4 1 $3 2 $2 3 $1 4 3 4 5 6 Price Quantity Demanded

At price P 3 quantity demanded equals quantity supplied-- Increase Demand With Supply Constant, Equilibrium Price and Quantity Both Increase. S D2D2 E1E1

By J.A. SACCO. MARKET EQUILIBRIUM Market equilibrium When the quantity demanded equals the quantity supplied—when buyers’ and sellers’ plans are consistent

Determinants of Quality and Quantity Values of Water for

Chapter Sixteen Equilibrium. Market Equilibrium A market is in equilibrium when total quantity demanded by buyers equals total quantity supplied by

CHAPTER 4 Elasticity. The Responsiveness of the Quantity Demanded to Price When price rises, quantity demanded decreases. The question is how much

CHAPTER 3 DEMAND AND SUPPLYd. it depends on the demand e. it depends on the quantity demanded Recall that a change in demand is different from a change in quantity demanded. 3. A change

Government in the Market. Market Disequilibrium If quantity demand exceeds quantity supplied or quantity supplied exceeds quantity demanded, a disequilibrium

Question 1 Price of Good A Quantity demanded of Good A Quantity demanded of Good B $101005 811010 1.Using midpoint method, calculate price elasticity of

Equilibrium. Market Equilibrium A market is in equilibrium when total quantity demanded by buyers equals total quantity supplied by sellers. An equilibrium

AP Economics University High 2012-2013. In a competitive market, price will adjust until quantity supplied equals quantity demanded. However, sometimes

CHAPTER 6: DEMAND, SUPPLY, AND PRICES. Key Concept: Equilibrium Market Equilibrium: Occurs when the quantity demanded and the quantity supplied at a

Change In the Quantity Demanded The change in quantity demanded shows a change in the amount of a product purchased when there is CHANGE in price. This

500 12489 Ch05 117-143 - Universidad Rafael Landívar · quantity demanded of 0.1 million barrels. So the percent change in the quantity demanded is % change in quantity demanded

CHANGE IN DEMAND vs CHANGE IN QUANTITY DEMANDED Krugman Section 2, Module 5, 6

Chapter 2 Demand and Supply Updated - Weebly · 2019. 8. 6. · quantity demand ! Demand v. quantity demanded: ! Quantity demanded refers to the relationship that is determined by

chapter€¦ · price. For example, if price changes from $12 to $10, ... d 1 Quantity demanded changes proportionately to Unit elastic price change: % ... d 0 Quantity demanded does

Selling Quantity Price Demanded $ 3 $ 2 $ 1 $ 4 10 25 40 60 15 $ 5

M ARKET EQUILIBRIUM. Market equilibrium exists when quantity demanded (Qd) equals quantity supplied (Qs). It can be determined by the intersection between

ELASTICITY How quantity demanded or supplied changes with changes in price

· PDF fileanalysis is the basic tool of ... vertical axis will cause an increase in quantity demanded, measured along the horizontal axis. Change in quantity demanded

Economics Mr. Bordelon Equilibrium Review. Key Terms The point at which quantity demanded and quantity supplied are equal

Demand & Supply Demand is different from quantity demanded. Demand refers to the quantities demanded at ALL given prices while quantity demanded refers

Determinants of Demand. Review: Change in Quantity Demanded Quantity Price D1

· Web viewUnderstands that the equilibrium market price and quantity occurs where quantity demanded equals quantity supplied 6. Understands how price guides resource allocation and

Objectives Explain the law of demand Change in quantity demanded Change in demand

12. The relationship between quantity supplied and price is _____ and the relationship between quantity demanded and price is _____. A) direct, inverse

Chapter Elasticity and Its Application 5. The Elasticity of Demand Elasticity – Measure of the responsiveness of quantity demanded or quantity supplied

Microeconomics – Unit 2 part 2. Price P Quantity Demanded Qd $9 2 83 7 5 6 9 Let’s assume Lindsey would see the quantity demanded at the following prices:

ECON1001 Tutorial 3. Q1 Your economics professor told you that the quantity demanded of a good is higher when prices are lower, and the quantity demanded

Price P Quantity Demanded Qd $92 83 7 5 6 9