Please enable JavaScript.
Coggle requires JavaScript to display documents.
Demand & Supply Analysis - Coggle Diagram
Demand & Supply Analysis
-
-
Law of Demand
Price up, Qty demand down
price down, Qty demand up
-
-
Change in Qty Demand
-
As the price falls from P1 to P2, the quantity demanded rises from Q1 TO Q2 and point A moves to point B
Contraction of demand is the decrease in the quantity demanded as the price increases. As P5 increases to P4, the quantity demanded falls from Q5 to Q4 and point E moves to point D
Change in Demand
When one of the other factors influence buying plans changes, there is the change in demand and a shift of the demand curve
-
-
-
-
-
Supply Analysis
The ability and willingness to sell or produce particular goods and services within a given period of time at a particular price, ceteris paribus
Law of Supply
the higher the price of a product, the greater is the quantity supplied of that product
the lower the price, the lower is the quantity supplied, ceteris paribus.
Based on the law of supply, a positive relationship exists between price and the quantity supplied.
Supply Curve
Relationship between qty supplied and its price (when all together influence on producers planned sales remain the same)
-
Change in Qty Supply
When price change and other influence on selling plans remain same, there is a change in qty supply and movement along the supply curve
upwards movement - price rise, qty supplied decrease
downwards movement - price falls, qty supplied decreases
Change in Supply
when one if the others factors influence selling plan changes, there is a change in supply and shift of the supply curve
occurs when there are a changes in factors such as tech, gov policies etc.
-
-
-