Basics of Supply including the Law of Supply, Supply Curves and Schedules, Determinants of Supply, and the difference between Supply and Quantity Supplied.
Supply and Demand IssuesSupply and demand are the starti.docxmattinsonjanel
Supply and Demand Issues
Supply and demand are the starting point of all economic analysis
The essence of choice is being able to balance the two
Touro University International
S U P P L Y
The different quantities that a producer or producers will make available to the market at different prices over a given period of time.
Touro University International
LAW OF SUPPLY
As price increases, producers are willing to produce and sell more
As price decreases, producers are willing to produce and sell less
Price and Quantity Supplied are directly related
Touro University International
Supply Table
Price Quantity
$4.00 1500
$5.00 1800
$6.00 2000
$7.00 2500
$8.00 3000
Widgets Per Week
Touro University International
Supply Graph
Touro University International
�
Producer Costs
Fixed Costs:
Costs that don't change as production levels change Ex: Rent, Insurance, Loan Payments, Taxes
Variable Costs:
Costs that increase and decrease with changes in the production levels
Ex: Labor costs, Materials, Utilities
Total Costs = Fixed Costs + Variable Costs
Touro University International
Changes in Supply
Production Costs Ex: Materials, Labor, Technology, Taxes
Number of Producers in the Market
Profitability of other production options
Expectation of future market price
Supply in the market will change if there is a change in:
Touro University International
Increase in Supply
Q
P
P1
Q1
S1
Q2
S2
Touro University International
DEMAND
The various quantities that a person or group is willing to buy at various prices
Touro University International
Law of Demand
As prices increase, the quantity people are willing to buy decreases
As prices decrease, the quantity people are willing to buy increases
Indirect price/quantity relationship
Touro University International
DEMAND TABLE
(Coca-Colas per week)
Price Quantity
$.25 20
$.50 10
$.75 7
$1.00 5
Touro University International
Demand Graph
Touro University International
�
REASONS FOR DEMAND
Income Effect (Price Effect)
When price rises, a consumer cannot afford to buy as much. But, when price declines, a consumer can afford to buy more. Price changes affect “purchasing power” of income
Touro University International
REASONS FOR DEMAND
Substitution Effect
When prices increase on one product, consumers will buy a substitute product instead. But when prices decrease on a product, consumers will switch to that product from other substitutes.
Substitutes are products that can be used in place of each other. Complements are products that are used together
Touro University International
REASONS FOR DEMAND
Law of Diminishing Marginal Utility
As we have more and more units of a product, the satisfaction we get from each additional unit decreases.
Marginal = additional, next, or last
Utility = satisfaction
Touro University International
Changes in D ...
Demand Supply analysis...Explanations for Law of Demand Degree of scarcity of one good relative to another helps determine each good’s relative price Definition of demand includes the “other things constant” assumption Among the “other things” are the prices of other goods Substitution Effect When the price of a good falls, its relative price makes consumers more willing to purchase this good When the price of a good increases, its relative price makes consumers less willing to purchase this good Changes in the relative prices – the price of one good compared to the prices of other goods – causes the substitution effect…you substitute toward the less expensive good.
Basics of Supply including the Law of Supply, Supply Curves and Schedules, Determinants of Supply, and the difference between Supply and Quantity Supplied.
Supply and Demand IssuesSupply and demand are the starti.docxmattinsonjanel
Supply and Demand Issues
Supply and demand are the starting point of all economic analysis
The essence of choice is being able to balance the two
Touro University International
S U P P L Y
The different quantities that a producer or producers will make available to the market at different prices over a given period of time.
Touro University International
LAW OF SUPPLY
As price increases, producers are willing to produce and sell more
As price decreases, producers are willing to produce and sell less
Price and Quantity Supplied are directly related
Touro University International
Supply Table
Price Quantity
$4.00 1500
$5.00 1800
$6.00 2000
$7.00 2500
$8.00 3000
Widgets Per Week
Touro University International
Supply Graph
Touro University International
�
Producer Costs
Fixed Costs:
Costs that don't change as production levels change Ex: Rent, Insurance, Loan Payments, Taxes
Variable Costs:
Costs that increase and decrease with changes in the production levels
Ex: Labor costs, Materials, Utilities
Total Costs = Fixed Costs + Variable Costs
Touro University International
Changes in Supply
Production Costs Ex: Materials, Labor, Technology, Taxes
Number of Producers in the Market
Profitability of other production options
Expectation of future market price
Supply in the market will change if there is a change in:
Touro University International
Increase in Supply
Q
P
P1
Q1
S1
Q2
S2
Touro University International
DEMAND
The various quantities that a person or group is willing to buy at various prices
Touro University International
Law of Demand
As prices increase, the quantity people are willing to buy decreases
As prices decrease, the quantity people are willing to buy increases
Indirect price/quantity relationship
Touro University International
DEMAND TABLE
(Coca-Colas per week)
Price Quantity
$.25 20
$.50 10
$.75 7
$1.00 5
Touro University International
Demand Graph
Touro University International
�
REASONS FOR DEMAND
Income Effect (Price Effect)
When price rises, a consumer cannot afford to buy as much. But, when price declines, a consumer can afford to buy more. Price changes affect “purchasing power” of income
Touro University International
REASONS FOR DEMAND
Substitution Effect
When prices increase on one product, consumers will buy a substitute product instead. But when prices decrease on a product, consumers will switch to that product from other substitutes.
Substitutes are products that can be used in place of each other. Complements are products that are used together
Touro University International
REASONS FOR DEMAND
Law of Diminishing Marginal Utility
As we have more and more units of a product, the satisfaction we get from each additional unit decreases.
Marginal = additional, next, or last
Utility = satisfaction
Touro University International
Changes in D ...
Demand Supply analysis...Explanations for Law of Demand Degree of scarcity of one good relative to another helps determine each good’s relative price Definition of demand includes the “other things constant” assumption Among the “other things” are the prices of other goods Substitution Effect When the price of a good falls, its relative price makes consumers more willing to purchase this good When the price of a good increases, its relative price makes consumers less willing to purchase this good Changes in the relative prices – the price of one good compared to the prices of other goods – causes the substitution effect…you substitute toward the less expensive good.
Demand supply analysis...
Explanations for Law of Demand Degree of scarcity of one good relative to another helps determine each good’s relative price Definition of demand includes the “other things constant” assumption Among the “other things” are the prices of other goods Substitution Effect When the price of a good falls, its relative price makes consumers more willing to purchase this good When the price of a good increases, its relative price makes consumers less willing to purchase this good Changes in the relative prices – the price of one good compared to the prices of other goods – causes the substitution effect…you substitute toward the less expensive good.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
2. A Competitive Market Any arrangement that brings buyers and sellers together Physical or virtual
3. Since Economics is about Choices… Demand Supply We see how all buyers’ and sellers’ decisions interact in the market to create prices.
4. What is DEMAND? Individual: how one person’s decisions affect price Market: total sum of all buyers in a market Consumers’ willingness and ability to buy an item at a given price Wants within budget constraints Refers to a behavior
5. THE LAW OF DEMAND Shows an inverse relationship between price (P) and quantity (Q) Price affects the quantity demanded Higher prices lower quantity demanded Lower prices more quantity demanded Sales!
7. The Demand Law exists… Income effect $ increase you feel poorer, you buy less $ decrease you feel richer, you buy more Substitution effect Pepsi vs. Coke Marginal Utility Ex. All You Can Eat Buffet Each plate makes you less happy than the plate before
8. DemandSchedule vs. Curve Curve Schedule shows all of the combinations of quantities demanded at different prices, ceteris paribus Curve Plots the relationship between price and quantity demanded
9. How do you shift the Demand Curve? Tastes or Preferences Related Goods’ Prices Income Population (# of buyers) Expectations
10. The 5 Determinants of Demand Affected by trends and health considerations Related Prices Complements Hot dogs and buns If P goes up of complement, demand decreases and vice virsa Substitutes Pepsi vs. Coke If P of substitute goes up demand increases Tastes (Preferences)
11. The 5 Determinants of Demand If income increases Buy more luxury/normal goods If income decreases Buy more normal/inferior goods More buyers = more demand Less buyers = less demand Income Population (# of Buyers)
12. The Five Determinants of Demand Expectations If P is expected to go up in the future, demand increases NOW If P is expected to go down in the future, demand decreases NOW
15. GROUP ACTIVITY You are in charge of opening a firm offering a specific good or service. Decide on a product name, slogan, and then answer the three basic questions of production: what you will produce, how you will produce it, and for whom you will produce it. After, draw a potential demand curve for your expected market of the good or service. Explain how your demanders’ curves could shift in or out using the determinants of demand. Be prepared to justify your answers as expert economists.
17. THE LAW OF Supply Shows a direct relationship between price (P) and quantity (Q) Price affects the quantity supplied Higher prices higher quantity supplied Lower prices less quantity supplied PRODUCERS LOVE HIGHER PRICES!
25. Movement along the Curve vs. Shift Changes in the quantity supplied comes because of a price change A shift in the Curve comes because of a change in a determinant of supply.
26. How do you shift the Supply Curve? Sellers (#) Productivity Input Costs Expectations Related Prices Cash Change Taxes or subsidies
27. The 6 Determinants of Supply If more suppliers Shifts right If less suppliers Shifts left Increase supply Technology, capital innovation Decrease supply Natural phenomenon hinders productivity Sellers Productivity
28. The 6 Determinants of Supply If inputs price increases Shifts left If inputs price decreases Shifts right If price will go up in the future, the supply NOW decreases If price will decrease in the future, the supply NOW increases Input Prices Expectations
29. The 6 Determinants of Supply If related price increases Shifts left If related price decreases Shifts right Subsidy Supply shifts right Tax Supply shifts left Related Prices Cash Change