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1.2 Supply & Demand - Coggle Diagram
1.2 Supply & Demand
Supply
Amount Businesses are willing and able to sell at any given price.
Changes in Cost of Production/ New Technology/ Indirect Taxes
Demand
Amount buyers are willing and able to purchase at any given price.
Factors
Price
Contract/ Extend
Taste/ Fashion
Complementary
Preferences
Advertising
Demographics
Seasonal
Substitutes
Other than price
Shift
Right (Inc)
Left (Dec)
PED
Responsiveness of demand towards price
0-1: Inelastic
More than 1: Elastic
PED= %Change in Quantity Demanded/ %Change in Price
Substitutes/ Percentage of income/ Luxury or necessity/ Addiction/ Time Period
YED
Responsiveness of demand following a change in income
Elastic
Big change in demand, when price Inc or Dec
Inelastic
Little change in demand, when price Inc or Dec