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UNIT 2: SUPPLY and DEMAND - Coggle Diagram
UNIT 2: SUPPLY and DEMAND
Demand
definition
the want or willingness of consumers to buy good & serives
law of demand
as price increases, less of a good demand -> P⬆️Q⬇️
reasons
income effect
income ⬆️demand ⬆️
substitution effect
⬆️price encourage ppl to buy lternative goods
the law of diminishing marginal utility
as consumption⬆️marginal utility ⬇️
determinants
change in consumers income
changed in taxes on income
price & availability of other good & servies
change in taste/ habit/ fasion
population change
demographic
government policy change
seasonal change
demand curve
supply
definition
amount of a good or service firms or producers are willing to make and sell at different price
law of supply
as price increases, more good supplied form the firms ->
P⬆️Q⬆️
reasons
the law of diminishing marginal utility
as consumption⬆️marginal utility ⬇️
determinants
Gov. intervention
changed in taxes on income
availability of resources
productivity
population change
price & probability of other goods related goods
government policy change
cost of factors of production
supply curve
