Supply and Demand

Supply Supply is the various quantities of a good or service that producers are willing to sell at all possible market prices

Demand The desire, willingness, and ability to buy a good or service. Elastic Demand-where change of prices changes the demand of the product (if there is a sale on Sprite, you will purchase more) Inelastic Demand-where the price change doesn’t affect the demand (you are going to pay whatever the price is for the medicine that you need)

Law of Supply and Demand When prices goes down, the demand for that product will go up When the prices go up, the demand of that product will go down Supply When there is not a lot of the product, the price will go up When there is a lot of the product, the price will go down

Production Possibility Curve The production possibility frontier (PPF) is a curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.). The PPF assumes that all inputs are used efficiently. The curve in the chart is called the equilibrium price (you get the best price for the product)