Changes on Demand
Changes in the Prices of Other Goods
Substitutes an example can be Coke and Pepsi
Complements an example can be tennis balls and tennis rackets.
Changes in Consumer Expectations
Changes on Supply
Shifts of the Supply Curve
These can happen due to other factors that affect the supply of a particular good.
Factors that affect the supply are:
1. State of technology
2. Prices of relevant resourc
Changes in Production
Changes in Producer Expectations
Higher prices of the good in question may help expand the business now, thereby
shifting the supply of the good.
When a good can be easily stored, producers, exp
Assignments are due at the date posted. They are considered late after that date, and
you have a grace period (a window) of two (2) more days to turn them in without a
The law of Demand applies even to choices that seem more personal than economic,
such as whether or not to own a pet.
sum of the individual demands in the market.
Shifts of the Demand Curve
Demand, Supply and Markets
This chapter introduces demand and supply and shows how they interact in competitive
Demand and supply are the most fundamental and the most powerful of all economic
The Law of Supply
Just as demand is a relation between price and quantity demanded, supply is a relation
between price and quantity supplied.
How much producers are willing and able to offer for s
The Substitution Effect of a Price Change
Scarcity is a reality, and the degree of scarcity of one good relative to another
helps to determine each goods relative price.
Other things constant is
The discussion board will be open all week as posted in the Course Outline. It will close
that Sunday midnight. There are no further extensions.
Demand in Equilibrium and Disequilibrium
LO3 DEMAND AND SUPPLY CREATE A MARKET
How do we resolve that consumers are looking for lower prices and producers are
looking for higher prices?
A Market includes all the arra