econ200notes

1numberofsuppliers suppliersarelimitedpricewillbehigh

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Unformatted text preview: eases D decreases 3. Income­ Inferior Goods As incomes go up the demand for normal goods decreases. As peoples incomes go down, demand for normal goods increases ^Y D decreases, Y decreases D^ Supply and Demand 4. Preferences 5. Prices of Related Products: Substitutes 6. Prices of Related Products: Complements 7. Expected future Prices by consumers 8. Expected future Income by consumers SUPPLY Price Supply $6 2 7 3 8 5 9 9 Supply is the entire curve Quantity supply is just a point on the curve Price changes Quantity Supplied DOES NOT CHANGE SUPPLY There are 5 determinants of Supply! 1. Number of suppliers Suppliers are limited price will be high Number of suppliers goes up, supply goes up causing cost of product to go down 2.COST!!!! as supply goes up cost goes down 3. Physical Availability of Resources­ PAR 4. Technology 5. Expected future prices by Suppliers Tariff Tax raises cost...
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This note was uploaded on 10/30/2012 for the course BUS 420 taught by Professor Thisal during the Fall '11 term at Arizona.

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