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SUPPLY

SUPPLY. DEMAND. Plot the following:. Price. Quantity Demanded. Qd. P. $9. 2. 8. 3. 5. 7. 6. 9. Price. Quantity Demanded. Qd. P. $9. 2. 8. 3. 5. 7. 6. 9. P. Qd. 9. just a point on the curve. To be on the demand curve a person must be WILLING and ABLE to

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SUPPLY

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  1. SUPPLY DEMAND

  2. Plot the following: Price Quantity Demanded Qd P $9 2 8 3 5 7 6 9

  3. Price Quantity Demanded Qd P $9 2 8 3 5 7 6 9 P Qd 9 just a point on the curve. To be on the demand curve a person must be WILLING and ABLE to purchase the product or service. 8 7 6 D is the entire curve. 2 3 9 5 Q

  4. Price Quantity Demanded Qd P $9 2 8 3 5 7 6 9 P Qd 9 just a point on the curve. There is an ___________ relationship between price and quantity. 8 inverse 7 6 D is the entire curve. 2 3 9 5 Q

  5. 9 8 7 6 D 2 3 9 5 Q Definitions: Quantity demanded--it is the amount that will be purchased at a specific P. Demand--it is a schedule of quantities of goods and services that will be purchased at various prices at a specified time, all other things held constant.

  6. 9 8 7 6 D 2 3 9 5 Q

  7. Qd 9 just a point on the curve. 8 7 6 D is the entire curve. 2 3 9 5 Q Price changes Quantity Demanded Price DOES NOT CHANGE DEMAND!!!!!!!!

  8. Only one variable Qd PRICE PRICE DOES NOT DEMAND!!

  9. GUESS HOW MANY DETERMINANTS OF DEMAND THERE ARE? 8 And if you don’t memorize these variables, YOU WILL FAIL THIS CLASS!! ARE THERE ANY QUESTIONS?

  10. Eight Determinants of Demand: 1. # of consumers

  11. 6 $36.95

  12. Eight Determinants of Demand: 1. # of consumers 2. Income--Normal Goods As people’s incomes go up demand for normal goods increases. As people’s income go down, demand for normal goods decrease. 3. Income--Inferior Goods As people’s incomes go up demand for inferior goods decreases. As people’s income go down, demand for inferior goods increases.

  13. ______Used Furniture Store ______Lazy Boy Store

  14. $25

  15. Eight Determinants of Demand: 1. # of consumers 2. Income--Normal Goods 3. Income--Inferior Goods 4. Preferences

  16. Eight Determinants of Demand: 1. # of consumers 2. Income--Normal Goods 3. Income--Inferior Goods 4. Preferences 5. Price of related products: Substitutes

  17. Eight Determinants of Demand: 1. # of consumers 2. Income--Normal Goods 3. Income--Inferior Goods 4. Preferences 5. Price of related products: Substitutes 6. Price of related products: Complements

  18. Eight variables that shift Demand: 1. # of consumers 2. Income--Normal Goods 3. Income--Inferior Goods 4. Preferences 5. Price of related products: Substitutes 6. Price of related products: Complements 7. Expected future P’s by consumers 8. Expected future Y by consumers

  19. SUPPLY

  20. P S Q Definitions: Quantity supplied--it is the amount that will be sold at a specific P. Supply--it is a schedule of quantities of goods and services that will be sold at various prices at a specified time, all other things held constant.

  21. GUESS HOW MANY DETERMINANTS OF SUPPLY THERE ARE? 5 And if you don’t memorize these variables, YOU WILL FAIL THIS CLASS!! ARE THERE ANY QUESTIONS?

  22. Five determinants of Supply: 1. # of suppliers 2. Costs 3. Physical Availability of Resources 4. Technology 5. Expected Future Prices by Consumer

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