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Chapter 4 Mind Map- Avneet Rai (causes for changes in supply (technology…
Chapter 4 Mind Map- Avneet Rai
The Market
Market
Network of buyers or sellers
Price determination process
Where goods are sold
Market Equilibrium
Equilibrium
equilibrium price
no change in price
absence of surpluses or shortage
set price
point =supply demand intersect
Changes in demand and supply
Demand
services that buyers purchase
given period of time
Ex.= demand for tims
Law of demand
Quantity demanded of product varies
other variables don't change
Supply
Quantities sellers offer for sale
during given period of time
Ex. = microprocessors to major computer business
Law of supply
Quantity supplied product
will increase
fall = price decreasing
Other variables don't change
Causes for changes in demand
population
demographics are monitored
population statistics
changes in ..............
age, income, etc
tastes
changes in preference
advertising = influencing society
well publicized reports = demand increase
substitutes
non-price factors
Whole demand curve to shift
demand falls=price rises
people substitute to cheaper goods
expectations
consumers anticipating particular products rising
consumers expectation
ex. housing prices
causes for changes in supply
Costs
ex. T-shirt seller's increase in supply
increase/ decrease in production cost
Number of sellers
effects amount of product supplied
ex.increases supply in rental market videos
technology
improvement in tech = decrease production
improvements of computerization = manufactures increase
Nature & Environment
ex. Change in weather
Drought , snowfall
impacts supplies on certain products
price related outputs.
production one item =affects supply
switching from oats to barley
