The document defines key economic concepts: demand refers to how much consumers want to buy at different prices, while supply refers to how much producers want to sell. Both demand and supply are represented by curves that shift due to various influences. Market equilibrium exists when demand and supply are equal, where the quantity demanded equals the quantity supplied. The equilibrium price clears the market.

2. 🎁 To know what is Supply and Demand.
🎁 To know why changes occur in Supply and Demand
Curve
🎁 To know what is Market Equilibrium

3. 🎁 “Demand” means all the amounts people will
want to buy at all possible different prices,
everything else unchanged; it is the relationship
between price and how much people want to
buy.
🎁 Demand is a list of quantities at different
prices and is illustrated by the demand curve.
🎁 The relationship between the quantity demand
and the price of a good when all other influences
on buying plans remain the same.

4. 🎁 Individual Demand
- The demand of
an individual
consumer.
🎁 Market Demand
- Sum of individual
demands of all
consumers in the
🎁 The amount of a good,
service, or resource that
people are willing and able
to buy during a specified
period at a specified price.
🎁 It depends on the price
of a good or service in the
marketplace, regardless of
whether that market is in
equilibrium.

5. 🎁 It states that there is a negative, or inverse,
relationship between price and the quantity of a
good demanded and its price.
🎁 Price increases  Quantity Demanded
decreases
🎁 Price decreases  Quantity demanded
increases

6. 🎁 A list of the quantities demanded at each different
price when all the other influences on buying plans
remain the same.
🎁 is a table of the quantity demanded of a good at
different price levels. Thus, given the price level, it is
easy to determine the expected quantity demanded.

7. 🎁 A graph of the
relationship between the
quantity demanded of a
good and its price when all
other influences on buying
plans remain the same; i.e.
the graph of the good’s
own-price and how much
people want to buy at each
own-price.
PRICE
(PER
CALL)
QUANTITY
DEMANDED
(CALLS PER
MONTH)
$ 0 30
0.50 25
3.50 7
7.00 3
10.00 1
15.00 0
ANNA'S DEMAND
SCHEDULE FOR
TELEPHONE CALLS

8. 🎁 Changes in consumer income
🎁 Changes in prices of related goods
🎁 Changes in consumer expectations
🎁 Changes in the number or composition of consumers
🎁 Changes in consumer tastes

9. 🎁 A change in the
quantities that people
plan to buy [at various
prices] when any
influence other than
the own-price of the
good changes. In
other words, a shift or
change in the
relationship between
the price of the good
and how much of it
people want to buy.
1. When demand
decreases, the demand
curve shifts leftward
from D0 to D1.
2.When demand
increases, the demand
curve shifts rightward
from D0 to D2.
When demand
changes, the
demand curve shifts.

10. 🎁 Producer’s side
🎁 A relation between the price of a good and the
quantity that the producers are willing and able to offer
for sale during a given period, other things constant.
🎁 Supply is a list of quantities at different prices and is
illustrated by the supply curve, just like demand and
the demand curve.

11. 🎁 Quantity Supplied
represents the number of
units of a product that a
firm would be willing and
able to offer for sale at a
particular price during a
given time period.
🎁 Individual Supply
- The supply of an
individual producer.
🎁 Market Supply
- The sum of individual
supplies of all producers in
the market.

12. 🎁 The quantity of a good supplied during a given
period is usually directly related to the price of the
good
🎁 Increase in price leads to increase in quantity
supplied; decrease in price leads to decrease in quantity
supplied.
🎁 Creates upward sloping supply curve

13. 🎁 A graph of the relationship
between the quantity supplied
and the good’s own-price
when all other influences on
selling plans remain the same.
🎁 A list of the quantities
supplied at each different
price when all other
influences on selling plans
remains the same.

14. 🎁 Changes in technology
🎁 Changes in prices of relevant resources
🎁 Changes in the prices of alternative goods
🎁 Changes in Producer Expectations
🎁 Changes in the number of producers

15. 🎁 When supply shifts
to the right, supply
increases. This causes
quantity supplied to be
greater than it was
prior to the shift, for
each and every price
level.
🎁 Caused by changes
in the determinants to
When supply changes, the
supply curve shifts.
1. When supply
decreases, the supply
curve shifts leftward
from S0 to S1.
2. When supply increases,
the supply curve shifts
rightward from S0 to S2.

16. 🎁 A market is any
arrangement that
bring buyers and
sellers together.
🎁 Is the condition that exists
when quantity supplied and
quantity demanded are equal.
🎁 When the quantity demanded equals the
quantity supplied-when buyers’ and sellers’ plans
are consistent.

17. 🎁 The price at which the
quantity demanded equals
the quantity supplied.
🎁 The quantity bought
and sold at the equilibrium
price.
This figure shows
the
equilibrium price
and
equilibrium
quantity
Market equilibrium
is at the intersection
of the demand
curve and the
supply curve.

18. 🎁 Law of market forces
-When there is a shortage, the price tends to rise.
-When there is a surplus, the price tends to fall.
🎁 Surplus or Excess Supply
-The quantity supplied exceeds the quantity
demanded.
🎁 Shortage or Excess Demand
-The quantity demanded exceeds the quantity

19. This figure shows
the
effects of an
increase in
demand.1. An increase in
demand shifts
the demand
curve rightward.
2. The price rises
to restore market
equilibrium.
3. Quantity
supplied increases
along the supply
curve.
4.
Equilibrium
quantity
increases.
This figure shows
the
effects of a
decrease in
demand.
1. A decrease in
demand shifts
the demand
curve leftward.
2. The price
falls to
restore
market
equilibrium.
3. Quantity
supplied
decreases
along the
supply curve.4.
Equilibrium
quantity
decreases.

20. Demand means all the amounts people will want
to buy at all possible different prices while Supply
refers to the amount of a product that producers and
firms are willing to sell at a given price. They are both
graphed using the Demand and Supply Curve. Shifting
Happens if Demand or Supply Increases or Decreases.
Market Equilibrium is when Supply and Demand are
balanced and in the absence of external influences the
values of economic variables will not change.