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Chapter 2 - Coggle Diagram
Chapter 2
Demand
The Demand Curve
It represent the relationship between the quantity demanded and the price of the product
Market Demand
The total amount demanded by consumers
Demand Schedule
The data from which a demand curve is drawn
Factors influencing demand
Income
Normal goods
One whose demand increase as income increase
Inferior goods
One whose demand decrease as income increase
Price and substitute(inferior good)
Complement goods
Joint demand
The Quantity of a product that consumers are willing and able to buy at different prices
Notional demand
This demand is speculative and not always backed up by the ability to pay
Effective demand
Demand that is supported by the ability to pay
Supply
The Quantity of a product that producers are willing and able to sell at different prices
Supple curve
Represent the relationship between the quantity supplied and the price of the product
Supple Schedule
Factors Influencing Supply
Government policy
Tax
Size and nature of the industry
Bigger industry supply more to the market
Supplies can be restricted to maintain the price
Cost
Others factor such as shortage, weather
Change in price of other product