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Supply and demand - Coggle Diagram
Supply and demand
Supply
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Law of supply: price rises, the quantity supplied will rise. Price falls for good or service, the quantity supplied will fall.
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Demand
Pausecci
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Expectations of price, availability, inc
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types of demand
Individual: Quantity demanded of good or service that would be demanded by all consumers in a market at different prices
Derived demand: demand for good, not for its own sake but for use in the production in other goods
composite demand: where goods have more than one use. Increase in demand for a product can cause a fall in supply of another product
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Demand schedule: table of quantities of a good/service that would be demanded by consumers at different prices
Law of demand: price falls, the quantity demanded increases
Exceptions
Snob goods/veblen goods: high price makes them attractive to those who can afford to purchase them and sought after
Giffen goods: essential items with few/ no substitutes, purchased by those on low incomes. Rise in prices may mean demand good rises
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Impact of technology
Aviation: online flight booking
tourist accomodation: third party
Online shopping
Online betting
advertising
access to information
banking
Education
Online streaming services
Newspapers
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Producer surplus: difference between price the seller would have accepted for good/service and price the seller actually receives