Price of inputs goes up supply goes down whole supply

price of inputs goes up supply goes down = whole supply curve will go the left
2. price of other things I can produce (blueberries went up) = supply of grapes will go down
3. number of suppliers goes up = aggregate supply will go up
4. technological improvements = supply will go up
5. price expectations
If the price were high the quantity demand will be lower
shortage - price goes up
surplus - price goes down
equilibrium price
equilibrium quantity
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Price elasticity of demand = Change in price impact quantity demanded
% change in quantity / % change in price

Very Elastic - Given % change in Price
Large % change in Quantity
Very Inelastic - Given % change in Price
Small % change in Quantity
E = % change in Q/ % change in P
Linear demand curve
Perfect Inelasticity - it doesn’t matter how much within reason, it’s not gonna change the
demand
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Total Revenue and Price Elasticity of Demand
Total Revenue = Price * Quantity
P Q Total Revenue
9 2 18
8 4 32
5,50 9 49.50
4.50 11 49.50
2 16 32
1 18 18
For any change in price, that is a much lower percent change in price than the impact that you
get on quantity. For every 1 down we move the price, we’re moving 2 up quantity. Huge changes
in percent quantity for very small changes in price so this is elastic.
Much larger percentage change in price and a much smaller change in quantity - relatively
inelastic
Price goes down total revenue was going up. At unit elasticity, when you do a price cut, the total