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Supply and Demand - Coggle Diagram
Supply and Demand
Price elasticity of demand (PED)
measure of the responsiveness of quantity demanded for a product to a change in price.
PED=%change in QD divided by %change in price
Income elasticity of demand (YED)
A measure of the responsiveness of demand for a product or service to change in consumer income.
YED = percentage change in quantity demand/ percentage change in income
non price factors
luxury good
Inferior good
surplus in markets
occurs when there is excess supply- that is quantity supplied is greater than quantity demanded.
Price Inelastic
where the product is not sensitive to a change in price
Necessity
Price elastic
where the product is sensitive to a change in price
Supply
The total amount of goods/services that are available for consumers to purchase.
Demand
The quantity of goods that consumers are willing and able to purchase at a given time.
shortage in markets