PPT On Demand And Supply

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Demand And Supply Presentation Transcript:
1.Demand And Supply

2.Checklist of Demand And SupplyDemand
Economic Goods and Non-Economic goods
Identify the Population (Whose Population?)
Population Distribution
Can be specified as Rich, Middle-class, Poor

3.Demand CurveInverse Relation between Price and Quantity
Negative slope: as price increases Quantity decreases
More people will buy at less Price: Clearance Sale
Ceteris Paribus- All other things being constant

4.Terminology of Demand
Substitute Goods and Complementary goods
Coffee Vs Tea: Substitute goods-Close substitute
Distant Substitutes
Competition between substitutes- for Money
Augmented product-core product-need-service

5.Shift in Demand
Shift in Demand Curve-Vs movement on demand
Increase in Population-Increase in the user-segment
Complementary goods- Compared to Substitutes
Price increases for complementary good
Demand low
Examples of Complementary goods-CNG and Cars

6.Demand Shift Table
Change in Population
Population doubling over time
Increase in production?

7.Shifted in Demand Graph
Notice in Shift less quantity demanded at the same price

8.Supply Curve

9.Equilibrium Curve
Notice Above and Below Equilibrium
Assumption Price does not vary per unit

10.Shifted Equilibrium Curve
11.Shifted Supply Equilibrium
Notice inequalities
Tables for concept not exact account

12.Examples-A
Show how does corruption affect the economy using demand and supply?

13.What will happen if the government fixes a lower price for chicken then the equilibrium price?
Note: no Change in table of Demand and Supply

14.Elasticity: