Please enable JavaScript.
Coggle requires JavaScript to display documents.
The Market Forces of Supply and Demand - Coggle Diagram
The Market Forces of Supply and Demand
Demand
• Market demand
-Sum of all individual demands for a good or service
-Market demand curve: sum the individual demand curves horizontally
Demand Curve Shifters
Number of buyers
decrease
Decreases quantity demanded
increase
Increases quantity demanded
Income
Normal good
Shifts D curve to the right
Inferior good
Shifts D curve to the left
The law of demand
– Other things equal
-the price of a good rises, the quantity demanded of the good falls
-the price falls, the quantity demanded rises
• Quantity demanded
Amount of a good that buyers are willing and able to purchase
Supply
Market Supply
Sum of the supplies of all sellers of a good or service - Market supply curve: horizontally
Supply Curve Shifter
Weather conditions
Ease of borrowing
Technology
Production of related goods
Government policy
Prices of factor inputs
Number of suppliers
Expectations about future
The Law of Supply
-other thing equal -the prices of a good rises, quantity supply of a good rises -the price falls, the quantity supplied falls
Quantity Supply
amount of a good , sellers are willing and able to sell
Market & Market Structure
The 4 Types
monopoly
oligopoly
perfectly competition
Market
Buyers As A Group
Sellers As A Group
Monopolistic Competition
price makers
many buyers many sellers