1. SUPPLY AND DEMAND

2. DEMAND: The desire or willingness the buy a product.

3. DEMAND CAN BE CHANGED BY PRICE, TASTE, NEW CONSUMERS, AND EXPECTATIONS BY CONSUMERS.

4. POPULATION CHANGE AFFECTS DEMAND
1. NEW APARTMENTS
2. MORE PEOPLE
POPULATION CHANGE AFFECTS DEMAND
3. HIGHER DEMAND

5. CHANGES IN INCOME AFFECT DEMAND

6. TASTE AFFECTS DEMAND

7. CHANGE IN EXPECTATIONS AFFECTS DEMAND
THIS
TO THIS TO THIS

8. LAW OF DEMAND: People will buy less if a product
Is expensive and will buy more if it is cheaper. So, quantity
And price move in opposite directions.

10. DEMAND CURVE

11. DEMAND SCHEDULE

12. MARKET DEMAND: The total demand of all consumers for their product
or service.

13. ELASTIC DEMAND: The demand for a product
changes…such as gasoline.

14. INELASTIC DEMAND: Some demands never
change. People will buy the product regardless
of the cost. Christmas trees are one example as
well as beer.

15. UTILITY: The pleasure you get out of something you
have bought.

16. SUBSTITUTE: Competing products are called substitutes
because you can buy them in place of a more expensive brand.

17. COMPLEMENT: Products that are used together such
as computers and software or DVD player and DVD’s.

18. SUPPLY: The quantities of a good or service that
producers (companies) are willing to sell.

19. LAW OF SUPPLY: The idea that suppliers (companies)
will offer more for sale at higher prices and less at lower
prices. The higher the price, the greater the incentive
to produce more for sale.

24. SUPPLY SCHEDULE
HOW MANY YOU WILL SUPPLY AT WHAT PRICE.

25. MARKET SUPPLY: The combined supply of all the
businesses that supply the same product or service.

26. SUPPLY CHANGES FOR FOUR REASONS
The cost of resources changes
The productivity of the workers changes
New technology speeds up production
Governmental policies or regulations change

27. PRODUCTIVITY: How much of a product or
service a worker produces in an hour.

28. SUPPLY ELASTICITY: How the supply changes
When price goes up or down.

29. SUPPLY SIDE ECONOMICS, ALSO CALLED TRICKLE DOWN… SAYS GOVERNMENT SHOULD CUT TAXES TO INCREASE PRODUCTIVITY

32. A SUPPLY AND DEMAND GRAPH

33. D = DOWN

34. EQUILIBRIUM PRICE IS WHERE SUPPLIERS THEIR GOODS AT A CERTAIN PRICE AND BUYERS WILL PAY THAT PRICE

35. A durable good/hard good is a good which does not quickly wear out and lasts a long time.

36. Nondurable goods or soft goods are the opposite of durable goods
Nondurable goods or soft goods are the opposite of durable goods. They may be defined either as goods that are used up when used once, or that are used or wear out quickly.

37. Examples of nondurable goods include cosmetics, food, cleaning products, fuel, office supplies, packaging and containers, paper and paper products, personal products, rubber, plastics, textiles, clothing and footwear.