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Demand the various quantities of a good or service Consumers are willing and able to buy at various prices in a period of time. Is the WHOLE Demand CURVE - Determinants: TIPEN T = Tastes and Preferences I = Income P= Prices of related goods Price of substitutes Price of complements E= Expectations N= Number of Buyers The determinants of demand only affect the demand curve, they do not affect supply. If the price of peanut butter goes up what happens to the demand for p. butter? Nothing, demand does not change but the quantity changes. Supply- the various quantities of a goods or service, suppliers are willing and able to offer for sale at various prices in a period of time. Is the WHOLE Supply Curve. - Determinants: PREST - P= Number of Producers - R= Resource Prices or Production Costs - E= Expectations - S= Subsidies, Taxes and Government Regulations - T= Technology
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If the demand of peanut butter goes up, it does nothing at all to the supply of p-nut butter. Number of producers entering the market then the supply is going to increase. If subsidies go down, it is going to decrease it.
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This note was uploaded on 03/26/2012 for the course ECON GM545 taught by Professor Gotches during the Summer '11 term at Keller Graduate School of Management.

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LiveSlidesforFinal - Demand the various quantities of a...

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