University:
California State University, Northridge
Course:
ECON 101 | Economics for Everyday Life
Academic year:

2023
Views:

9

Pages:

2
Author:

Mahmoud M.

Economics notes Supply and Demand: Competitive Market Models Competitive Markets - A market with many buyers and sellers for the same good or service A market with many buyers and sellers - None of the actions lead to positive value differences. Or Sales Service (For Multiple Businesses) - Behavior Explained by the Supply and Demand Model Demand Curve Supply Curve Problems that cause the demand curve to shift and determine the supply curve shift market equilibrium refers to the equilibrium price and quantity when it is supply or demand How Market Equilibrium Changes When a Curve Shifts Demand Curve As the price rises, fewer people want to buy the good or service lowers the price, they want to buy the good or service draw the demand curve: Supply hypothesis: A table showing how much of a good or service consumers are willing to buy at different prices Quantity demanded: actual price of the good or service Consumers at certain price Demand curve is curved due to demand and Negative Demand Demand Shift in Demand Curve A shift in the demand curve is a shift in demand at any price represented by the new demand curve A shift in the demand curve is a change in demand because Supply is created through a change in the good Supply Curve As price increases, so does supply Supply: the amount of goods or services people want to buy to sell at one point Duration of supply: shows actual quality or service Supply at different prices Supply curve: quantity supplied vs. Price Upward slope downward Change in supply curve Change in quantity supplied by a good or service a supply price change in supply curve accordingly change in supply price change from good results change Perceptual change in supply curve causes: inputs Changes in prices Goods/services are used to make other goods or services Increase in input prices Greater complexity of final goods Producers (shift left) Changes price of goods or services ▪ Quantity of goods a producer is willing to supply Business institutional demand for price of goods = Change in production (one good increases as the other increases) Combination in production = two products produced together Exchange change Technological improvement Producers spend less on inputs