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Define CIG(X-M)?, PES Chains Brits, PED, PES, PED Chains - Coggle Diagram

- - - - Factors that affect each of the components
        
        Exports and Imports are affected by:
        Exchange rates, income levels in foreign countries, and trade barriers (tariffs).
      - Consumption is affected by: Disposable income, consumer confidence, interest rates, and household wealth.
  - - - Investment is affected by:
        Interest rates (cost of borrowing), business confidence, corporate taxes, and technological progress.
  - - - Government spending is affected by:
        Fiscal policy, political priorities, and emergency needs (disaster relief, war).
- - - - A firm wants to enter the market to produce the good
        
        No barriers exist for setting up production
        
        Supply increases as the firm enters the new market
        
        Supply is price Elastic
  - - - A firm wants to enter the market to produce the good
        
        It is expensive to set up production for the good
        
        Supply can't increase fast enough to match the new price
        
        Supply is price Inelastic
- - - - A firm wants to produce more at the higher price
        
        It is easy to buy more resources to produce more goods
        
        Supply increases as production expands
        
        Supply is price Elastic
  - - - A firm wants to expand production
        
        It is hard to buy new resources or increase their production
        
        Supply cannot increase for the price increase
        
        Supply is price Inelastic
- - - - A firm has a warehouse with produced couches stored
        
        The firm can quickly supply the market if the price increases
        
        Supply can match the price increase
        
        Supply is price Elastic
  - - - A firm does not have a warehouse as goods are perishable
        
        It can not easily supply extra strawberries
        
        Supply can not match the price increase
        
        Supply is price Inelastic
- - - - The is a big amount of time to react to the price change
        
        A firm sets up a new brick factory
        
        New supply can match the price increase
        
        Supply is Elastic
  - - - There is not enough time to react
        
        A firm overproduces too many bricks that people don't want to buy
        
        The market is oversupplied, and production has to be shortenned
        
        Supply is price Inelastic
- - - - The paper factory is only working at 50% capacity
- - - - Consumers can easily switch
        
        Demand is price Elastic
        PED > 1
    - - Consumers have no other choice
        
        Demand is price Inelastic
        PED < 1
  - - - A 10% change in price is
        almost not noticable
        
        Demand is price inelastic
        PED < 1
    - - A 10% change in price is
        very noticeable
        
        Demand is price Elastic
        PED > 1
  - - - A change in price may heavily change
        amount of sales
        
        Demand is price Elastic
        PED > 1
    - - A change in price will barely change
        demand, as the resources are always needed
        
        Demand is price Inelastic
        PED < 1
  - - - A change in price has little
        effect on the consumption habbit
        
        Demand is price Inelastic
        PED < 1
    - - A change in price will
        discourage consumption
        
        Demand is price Elastic
        PED > 1
  - - - Consumers don't have enough
        time to react to a price change
        
        A change in price momentarily
        keeps the established demand
        
        Demand is price Inelastic
        PED < 1
    - - Consumers will adapt
        to the price change
        
        Demand will change
        
        Demand is price Elastic
        PED > 1
- - - - If it is hard for new firms to enter a market
        (due to high start-up costs or patents)
        
        Total supply will be Inelastic
        
        PES < 1
      - If it is easy to enter
        
        Supply will be Elastic
        
        PES > 1
    - - If the resources needed to make a
        product are easy to find
        
        Supply is Elastic
        PES > 1
      - If they are rare
        (gold or special microchips)
        
        Supply will be Inelastic
        PES < 1
    - - If a firm has a big warehouse
        full of finished goods, they can react
        instantly to a change in price
        
        Making supply Elastic
        PES > 1
      - If they produce just in time for consumption
        or the goods are perishable
        (fruits)
        
        Supply is inelastic
        PES < 1
    - - In the short run, a factory is stuck
        with the current production
        
        Supply is Inelastic
        PES < 1
      - In the long run, they
        can build a whole new
        factory
        
        Supply is Elastic
        PES > 1
    - - If a factory is only
        running at 50% capacity
        they can easily ramp up
        production if prices rise
        
        Supply is Elastic
        PES > 1
      - If a factory is already at 100%
        24/7 then they cannot
        increase production as easily
        
        Supply is Inelastic
        PES < 1
- - - - Brand A increases Price of coffee
        
        consumers see price increase relative to coffee brands B, C or D
        
        consumers switch to cheaper brands
        
        Quantity Demanded for A falls
        
        TR Falls
        
        Demand is price Elastic
    - - Price increase for special medicine
        
        No substitutes are available
        
        Demand remains even at a higher price
        
        Quantity demanded Remained
        
        Total Revenue increased
        
        Demand is price Inelastic
  - - - Price increase for family car
        
        A car is a high % of income
        
        Consumers are discouraged to spend an even higher % of income
        
        QD Falls
        
        TR falls
        
        Demand is price Elastic
    - - Price increase for a box of matches
        
        Matches are a small % of income
        
        Consumers might not notice the price change
        
        QD Remains
        
        TR increases
        
        Demand is price Inelastic
  - - - Luxurious good's price increase
        
        People can easily do without the luxury good
        
        Consumers would buy less of the good
        
        QD Falls
        
        TR decreases
        
        Demand is price Elastic
    - - Necessity's price increases
        
        People need the goods to survive
        
        People still need to buy the good
        
        QD Remains
        
        TR increases
        
        Demand is price Inelastic
  - - - The price of cigarettes increase
        
        People are addicted to consuming cigarettes
        
        They continue to buy the good even at increased prices
        
        QD remains
        
        TR Increases
        
        Demand is price Inelastic
    - - The price of socks increased
        
        People are not addicted to socks
        
        They can live without the socks
        
        QD falls
        
        TR decreases
        
        Demand is price Elastic
  - - - The price of good increases
        
        There hasn't been enough time to react to the price change
        
        Consumption remains at the same level
        
        QD remains
        
        TR increases
        
        Demand is Inelastic
    - - The price of a good decreased
        
        There has been enough time for consumers to react
        
        Consumption increases as people can buy the good more
        
        QD increases
        
        TR Increases
        
        Demand is El