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Econ 1000: Week 3 (Group 3 (the six main factors that change supply of a…

- - - - equilibrium price
      - equilibrium quantity
  - - - a good that is used in conjunction with another good
      - complement up, the price increases.
    - - a good that can be used in place of another good
      - substitute up, the price falls.
- - - - price
      - quantity
  - - - inferior good
      - normal good
    - - change of demand
- - - - both demand and supply change in opposite directions
    - - both demand and supply change in the same direction
  - - - the quantity supplied equals the quantity demanded
      - when the price lower than equilibrium price
      - the quantity demanded exceeds the quantity supplied
      - when the price higher than equilibrium price
- - - - the demand of goods and price effect each other
    - - the price wii increase when the quantity is small
    - - income effect
        
        the people will give up buying something when comparing with money that people earns the price is increasing
      - substitution effect
        
        people will search the same thing to stand it when the price rise up