Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Demand
P P
P
A
P1
B D2 D1
P2 D1 D2
Demand Q Q
Q1 Q2 Q
Movement Up/Down the Demand Shift to the right of the Demand Shift to the left of the Demand
Curve Curve Curve
Change in Price Change in Factors Other Than Price Change in Factors Other Than Price
1. Increase in Price causes a 1. Increase in Taste increases 1. Decrease in Taste
decrease in quantity the demand curve. decreases the demand
demand. 2. Increase in population curve.
2. Decrease in Price causes an increases the demand curve. 2. Decrease in population
increase in quantity 3. Increase in income in decreases the demand
demand. income increases demand if curve.
a normal good. 3. Increase in income
4. Decrease in income decreases demand if an
increases demand if an inferior good.
inferior good. 4. Decrease in income
5. Increase in price of decreases income if a
substitute (pepsi) increases normal good.
demand for good (coke). 5. Decrease in price of
6. Decrease in price of substitute (pepsi) decreases
complement (beer) demand for good (coke).
increases demand for good 6. Increase in price of
(pizza). complement (beer)
7. If I expect the price of the decreases demand for good
product to increase in the (pizza).
future, my demand today 7. If I expect the price of the
will increase. product to decrease in the
future, my demand today
will decrease.
P Supply P S1 P S2
P2 B S2 S1
P1 A
Q Q
Q1 Q2 Q
Movement Up/Down the Supply Shift to the right of the supply curve Shift to the left of the supply curve
Curve
Change in Price Change in Other Factors than Price Change in Other Factors than Price
1. Increase in Price causes a 1. Increase in technology 1. Decrease in technology
increase in quantity supply. causes an increase in causes a decrease in supply.
3. Decrease in Price causes an supply. 2. Increase in resource prices
decrease in quantity supply. 2. Decrease in resource prices causes a decrease in supply.
causes an increase in 3. Decrease in number of
supply. firms selling the product
3. Increase in number of firms causes a decrease in supply.
selling the product causes
an increase in supply.