Demand
What is Demand?
Is the desire, ability and willingness to buy a product and compete with others who have similar demand
What is Supply?
is the different quantities of a good that sellers are willing and able to sell (produce) at different prices.
What is equilibrium and how is it shown on a map?
The state of when Quantity demand and Quantity supplied are equal.
E on the map
Joanna, Alikai, and Amanda start a delightful doggie diner for the people of Brown Deer. With an increase of online orders due to the companies newly installed rapid ordering machine many people start advertising this new upcoming diner to their friends.
Figure out the two shifts and draw the two graphs indicating what will happen to Price and Quantity.
Taste and Preference for demand (right)
Technology for supply (right)
Quantity: increase
Price: ?
What is the LAW OF DEMAND?
When looking at Demand with Price and Quantity, There is an INVERSE relationship between price and quantity demanded. Ex. Price goes up then quantity demand goes down, or Price goes down then quantity demand goes up.
What is the LAW OF SUPPLY?
There is a DIRECT (or positive) relationship between price and quantity supplied.
As price increases, the quantity producers make increases.
As price falls, the quantity producers make falls.
Why do we care about Equilibrium when it comes.
Shows perfect market price balancing peoples demands to the amount of a product that is made
Eric and Ephraim pull all of their money together to start one of the first Rubber Band Ball museum/restaurant/gift shop in America. Americans hearing about this and decide to travel from all over the country to visit this location. But the government is unhappy with the massive diversity shift within Milwaukee and creates an excise tax taking a small portion of each patrons fee.
Figure out the two shifts and draw the two graphs indicating what will happen to Price and Quantity.
Number of Consumers for demand (right)
Government actions for supply (left)
Quantity: ?
Price: increase
Write out the five Demand Shifts?
Tastes and Preferences-likes/dislikes
Number of Consumers-population
Price of Related Goods
Income
Future Expectations-future sales
Write out the five Supply Shifts?
Prices/Availability of inputs (resources)
Number of Sellers
Technology
Government Action: Taxes & Subsidies
Future expectations
What is it called when the government puts a price limit above equilibrium... what is the benefit of this?
Price Floor: keeps the price high so that profits are being made. (example Corn)
Righteous and Kevin create a Maple wood carving business and are doing great as they opened in three new locations in Brown Deer. However with the new locations the price of Maple Glue is becoming more and more expensive, too expensive making this complementary good scarce for business.
Figure out the two shifts and draw the two graphs indicating what will happen to Price and Quantity.
Price of Related Goods demand (left)
number of sellers supply (right)
Quantity: ?
Price: Decrease
Draw this Shift: Hanad and Knowledge start a band and start selling CD's out of their van at school. One day Mr.Stangel hears of their music and asks the boys to play at his Family Reunion saying, "There will be a massive group of Michigan people coming to hear them play, and may also buy their CDs."
What shift change is this? and Draw the change.
Population Boom
Draw the shift: Darrya, Carmela, and Mariona all start a realtor business trying to help out the lower and middle class house buyers. The government hears this and decides to subsidize the business as it is a great way to help get people off the streets in a positive manner.
What is this shift and draw the new line.
Government Actions
What is it called when the government puts a price limit Below equilibrium... what is the benefit of this?
Price ceiling: keeps products affordable so the public can consume
Beckett creates a new mattress which revolutionizes sleeping. However there was just an emergency alert saying a massive storm will destroy large parts of America in the next couple days. Many will lose their jobs and be unable to afford any luxuries as of this moment.
Figure out the two shifts and draw the two graphs indicating what will happen to Price and Quantity.
Income for demand (Left)
future expectations for supply (left)
Quantity: Decrease
Price: ?
Draw this shift: Emily and Crystal start a tutoring service to help all their Economic buddies pass the Stock Market project. Right as they're about to started their business Covid broke out and caused most of their Clients to loose their jobs.
What is the shift and draw the change.
Income
Draw the Shift: Adrianna starts a Hair styling business right out of High school. However her business just lost a major deal with a good quality and cheap Hair gel provider.
What is this shift and draw the new line.
Price and availability of resources
John and Kayden create a new style of music called beatbox gravy (I couldn't think of anything better) and OVO signs them and starts pumping music CD's out of multiple new stores.
With this knowledge, draw the ONE SHIFT and describe what will happen to the Price and Quantity of music being sold?
Supply: Number of Sellers - the overall price will decrease but quantity will increase.
Mr. Rossetti/Stangel start a Econ Tutoring group knowing that with the upcoming test many students are trying to pass/do well. They also realized that past econ lessons have gone on sale, so Bigsetti and Stangel now have numerous questions to practice with clients.
Figure out the two shifts and draw the two graphs indicating what will happen to Price and Quantity.
Future expectations demand (right)
price/availability of inputs (right)
Quantity: increase
Price: ?