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Demand, Supply - Coggle Diagram
Demand
Determinants
expectation of future prices & income
number of potential buyers
taste & preference
demographic change
related goods
substitute goods
complement goods
income effect
inferior goods
income↑ demand↓
income↓ demand↑
normal goods
income↑ demand↓
income↓ demand↑
The law of demand
The income effect: price↓ → quantity demanded↑
The substitution effect
The law of diminishing marginal utility:
additional unit↑ → additional satisfaction↓
Supply
Determinants
taxes
subsidies
producers expectation
the number of firms
cost of factors of production
shocks or unexpected events
weather
war
catastrophes
technology
related goods
competitive supply
joint supply
The law of supply
price↑ → quantity supplied↑
price↓ → quantity supplied↓