1. Supply and Demand

2. Supply and Demand Marginal Utility Diminishing Marginal Utility
Usefulness or satisfaction that one gets from acquiring 1 or more units of a product
Remember “Bang for your Buck”
Diminishing Marginal Utility
Extra satisfaction from additional units begins to diminish

3. Shifts Along the Curve (Change in Quantity Demanded)
Income Effect
Purchasing Power
Substitution Effect

4. Factors That Shift The Demand Curve
A change in income
Change in tastes or preferences
Change in Information
Change in the price of other related goods
Substitutes
Complements
Change in expected future price
Change in number of consumers

5. Substitutes and Complements
Competing products that can be used in place of another
Related to each other in a way increase of price, increases demand for the other
Complements

6. Factors That Shift The Supply Curve
Change in the costs of production
Change in technology
Change in number of producers
Change in prices of alternatives
Change in producers’ price expectations
Change in time period to produce