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MARKET FORCE OF SUPPLY AND DEMAND - Coggle Diagram
MARKET FORCE OF SUPPLY AND DEMAND
SUPPLY
Market supply
sum of the supplied of all seller of a good or service
market supply curve: horizontally
to find the total quantity supplied at any price, we add the individual quantities
Supply curve shifter
wether condition
ease borrowing
easy credit facilities makes the cost of borrowing or spending on credit more attractive
production of goods
competitive supply
uses some of the same resource: termed, competitive supply
expectation about future
sller may adjust supply when their expectation of future price change
goverment policy
change in supply
lower the cost of production, supply is increase
joint supply
number of supplier
an increase in the number of seller
increase the quantity supply
shift S curve to the right
technology
price of factor input
supply related to price of inputs
a fall in input prices makes production more profitable at each output price
firms supply a larger quantity
the S curve shift to the right
The laws of supply
the price of a good rises, the quantity supplied of the good rises
the price falls, the quantity supplied falls
other things equal
Quantity supplied
sellers are willing and able to sell
things are equal
DEMAND
Quantity of demand
amount of a good that buyer are willing and able to purchase
Demand Shifter
the demand curve
shows how price affects quantity demanded, others things are equal
other things
thing that determine buyers demanded for a good price
changes in them shift the D curve
numbers of buyer
increase
shift D curve to the right
decrease
shift D curve to the left
Income
normal good
shift D curve to the right
inferior good
shift D curve to the left
prices of 2 related good
substitute
increase
complement
decrease
Tastes
a shift tasters toward a good wil increase demaned for that good and shift D curve to the right
expectation about the future
an increase in income, increase in current demand
higher pricers, increase in current demand
The laws of demand
the price of a good rises, the quantity of demanded of the good falls
the price fall, the quantity of demand rises
other things equal
Market of demand
market demand curve: sum the individual demand curve horizontally
sum of all individual demands for a good or service
MARKET STRUCTURE
Market
buyers as a group
determine the demand for the product
sellers as a group
determine the supply of the product
The Four Types
perfectly competitive market
many buyers and many seller
price takers
monopoly
seller 1 and many buyers
price maker
oligopoly
fewer sellers and many buyer
price maker
monopolistic competation
many buyer and many seller
price maker