Supply
Demand
Factors Affecting Demand
Factors Affecting Supply
PED/YED
100
The amount suppliers are willing and able to supply at a given price
Supply
100
The amount consumers are willing and able to pay at a given price for a good or service
Demand
100
This is inversely related to demand. As it decreases, demand increases. As it increases, demand decreases.
Price
100
• Increase in price of raw materials • Rise in minimum wage • Rise in overheads/fixed costs • Rise in rent or mortgage rates on premises
Cost of Production
100
What is -1 to 1?
Inelastic
200
What does a shift on the supply curve signify?
Increase or Decrease in Supply
200
What does a shift to the right on the demand curve mean?
Increase in Demand
200
This factor has an effect on the amount of a product that consumers are willing and able to buy depends on the type of good we're talking about. When it increases, demand NORMALLY increases.
Consumer Income
200
• Mechanization and automation of production processes means supply can increase. • Mass production methods improved to increase capacity. • Faster, more efficient, finish is of high quality
Changes in Technology
200
Petrol, Cigarettes, Drugs have an ________ demand
Inelastic
300
What does a shift to the left on a supply curve signify?
Decrease in Supply
300
What does a movement along the curve signify?
Change in Price
300
Think about two goods that are typically consumed together. For example, a burger and fries. We call these types of goods...
Complementary Goods
300
Government Intervention - When the government increases tax on goods such as petrol then supply will decrease.
Indirect Taxes
300
Quantity of newspapers demanded rose from 150,000 to 200,000 while the price charged for the papers went from 3 AED to 2 AED. Calculate the PED.
1
400
An appreciable amount of quantity demanded, for which there is an inadequacy of supply.
Excess demand
400
How are price and demand related?
Inversely related. As price increases, demand decreases. As price decreases, demand increases.
400
The price for DVD players increase, how does this impact the demand for CD players?
There is no relation between the demand for CD Players and the demand for DVD Players. :)
400
Things that are out of a businesses control. • Change in oil price • Change in tax rate • Change in Labour laws (working hours, minimum wage)
External Shocks
400
While the Quantity increased from 150,000 to 200,000 the population's average monthly salary rose from $9,000 to $12,500. Calculate the YED.
0.9
500
There has been a downpour in India, one of the largest producers of tea in the world. How does this affect the supply of tea in India. Draw a demand and supply curve.
Shift to the left.
500
There is an elevation in Price of cigarettes due to inflation. Create a supply and demand graph to show the demand for cigarettes as a heavy smoker following an increase in price.
There is no change in demand for tobacco cigarettes, as it is an inelastic good.
500
Nike shoes retail for $20. The PED value for Nike shoes is -0.8. Calculate the percentage change in quantity demanded following a $3 increase in price.
-18.4
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