Demand and Supply

customers willingness and ability to buy a good

Determinants

Price (P)

Price substitute (Ps)

Price complimentary (Pc)

Income (Y)

Taste (T)

Population (Pop)

Advertising (A)

Relationships

When price increases

Demand decreases

Shifts and movement on curves.

Shift/movement

Left is bad

right is good

Shift

Due to change in all or any other factors bar price

Movement

Due to change in prices

Subtopic

Determinants

Price.

Cost of production.

Selling price of goods that producer could switch their production to.

Technology breakthrough

Government taxes

Unplanned events

Suppliers

Provide the good or materials to create the good to keep up with the consumer demand and to be sold on to the consumer

What is this?

The price at which quantity demand by consumers equals the quantity supplied by producers.

Price mechanism

This changes the equilibrium as different factors eg price, advertising, population changes.