1. Supply & Demand BASICS

2. Demand & Wants  Wants  Wants = the desire for things with or without purchasing power (the ability to buy)  Demand  Demand = the willingness and ability (purchasing power) to buy something

3. Demand & Quantity Demanded  Demand refers to the various quantities of a good one is willing and able to buy at different prices.  Quantity demanded is the particular quantity at which one is willing and able to buy at a particular price.

4. To illustrate their difference... PriceQuantity 10 100 8 120 6 140 4 160 2 180

5. To illustrate their difference... PriceQuantity 10 100 8 120 6 140 4 160 2 180 Demand refers to the whole plan

6. To illustrate their difference... PriceQuantity 10 100 8 120 6 140 4 160 2 180 Demand refers to the whole plan Quantity demanded refers to the single quantity inside the plan

7. Individual Demand Curve A demand schedule : PriceQuantity 10 100 8 120 6 140 4 160 2 180  An individual demand curve is a curve that links the different quantity demanded of a person with their respective prices.

8. Individual Demand Curve PriceQuantity 10 100 8 120 6 140 4 160 2 180 Plotting it on a graph

9. Individual Demand Curve PriceQuantity 10 100 8 120 6 140 4 160 2 180 Plotting it on a graph P 0 Q

10. Individual Demand Curve PriceQuantity 10 100 8 120 6 140 4 160 2 180 Plotting it on a graph P 10 0 100 Q

11. Individual Demand Curve PriceQuantity 10 100 8 120 6 140 4 160 2 180 Plotting it on a graph P 10 6 0 100 140 Q

12. Individual Demand Curve PriceQuantity 10 100 8 120 6 140 4 160 2 180 Plotting it on a graph P 10 6 2 0 100 140 180 Q

13. Individual Demand Curve PriceQuantity 10 100 8 120 6 140 4 160 2 180 Plotting it on a graph P 10 6 2 D 0 100 140 180 Q

14. Law Of Demand P 10 2 D 100 180 Q

15. Law Of Demand P 10 2 D 100 180 Q  Law of Demand states that the quantity demanded of a good will fall when its price rises in a given period of time, ceteris paribus, and vice versa.

16. Law Of Demand P 10 Negatively sloped 2 D 100 180 Q  Law of Demand states that the quantity demanded of a good will fall when its price rises in a given period of time, ceteris paribus, and vice versa.

17. Law Of Demand P 10 Negatively sloped 2 D 100 180 Q  Law of Demand states that the quantity demanded of a good will fall when its price rises in a given period of time, ceteris paribus, and vice versa.

18. Law Of Demand P 10 Negatively sloped 2 D 100 180 Q  Law of Demand states that the quantity demanded of a good will fall when its price rises in a given period of time, ceteris paribus, and vice versa.

19. Why P  Qd  ? When the price of a good rises, the opportunity cost of buying this good rises. Given a fixed amount of money, the quantity of a good one can buy will fall when its price rises.

20. Supply & Wants  Wants  Wants = the desire for selling things with or without the ability to produce.  Supply  Supply = the willingness and ability (resources and technology) to sell something

21. Supply & Quantity Supplied  Supply refers to the various quantities of a good one is willing and able to sell at different prices.  Quantity supplied is the particular quantity at which one is willing and able to sell at a particular price.

22. To illustrate their difference... PriceQuantity 10 200 8 175 6 150 4 125 2 100

23. To illustrate their difference... PriceQuantity 10 200 8 175 6 150 4 125 2 100 Supply refers to the whole plan

24. To illustrate their difference... PriceQuantity 10 200 8 175 6 150 4 125 2 100 Supply refers to the whole plan Quantity Supplied refers to the single quantity inside the plan

25. Individual Supply Curve A supply schedule : PriceQuantity 10 200 8 175 6 150 4 125 2 100  An individual supply curve is a curve that links the different quantity supplied of a person with their respective prices.

26. Individual Supply Curve PriceQuantity 10 200 8 175 6 150 4 125 2 100 Plotting it on a graph

27. Individual Supply Curve PriceQuantity 10 200 8 175 6 150 4 125 2 100 Plotting it on a graph P 0 Q

28. Individual Supply Curve PriceQuantity 10 200 8 175 6 150 4 125 2 100 Plotting it on a graph P 10 0 200 Q

29. Individual Supply Curve PriceQuantity 10 200 8 175 6 150 4 125 2 100 Plotting it on a graph P 10 6 0 150 200 Q

30. Individual Supply Curve PriceQuantity 10 200 8 175 6 150 4 125 2 100 Plotting it on a graph P 10 6 2 0 100 150 200 Q

31. Individual Supply Curve PriceQuantity 10 200 8 175 6 150 4 125 2 100 Plotting it on a graph P S 10 6 2 0 100 150 200 Q

32. Law Of Supply P S 10 2 100 200 Q

33. Law Of Supply P S 10 2 100 200 Q  Law of Supply states that the quantity supplied of a good will rise when its price rises in a given period of time, ceteris paribus, and vice versa.

34. Law Of Supply P Positively sloped S 10 2 100 200 Q  Law of Supply states that the quantity supplied of a good will rise when its price rises in a given period of time, ceteris paribus, and vice versa.

35. Law Of Supply P Positively sloped S 10 2 100 200 Q  Law of Supply states that the quantity supplied of a good will rise when its price rises in a given period of time, ceteris paribus, and vice versa.

36. Law Of Supply P Positively sloped S 10 2 100 200 Q  Law of Supply states that the quantity supplied of a good will rise when its price rises in a given period of time, ceteris paribus, and vice versa.

37. Why P  Qs  ? When the price of a good rises, the opportunity cost of producing other goods rises. When the price of its good rises, the producer can have more money for buying materials and recruiting labour.