Demand and Supply topic of Microeconomics from Advanced placement program., Quizzes of Economics

Download Demand and Supply topic of Microeconomics from Advanced placement program. and more Quizzes Economics in PDF only on Docsity! Demand & Supply Cheat Sheet Demand Curve Supply Curve The quantities of a good demanded at a range of prices in a particular time period. The quantity of output a firm produces at the various prices of the good The Law of Demand The Law of Supply An inverse relationship between a good’s price and the quantity demanded. A direct relationship between a good’s price and the quantity produced. Quantity Demanded (Qd) Quantity Supplied (Qs) A Price is a movement along the Demand curve A Price effects Quantity Demand not Demand A  in Price is a movement along the Supply curve A Price effects Quantity Supplied not Supply Demand - Downward Sloping Supply – Upward sloping INCOME EFFECT P Income buy more DMU Consumption  utility  SUBSTITUTION EFFECT P switch to cheaper good PROFIT EFFECT P , Profit  COST EFFECT Supply , Costs  Demand Curve Shift – TRIBE Supply Curve Shift – STORES Tastes & Preferences Subsidies or # of Sellers Demand Increase Demand Decrease Supply Increases Supply Decreases More wanted - Demand  Less wanted - Demand Subsidies, S , Firms , S Subsidies, S, Firms, S Related Goods Prices – Substitutes & Compliments Technology & Taxes Demand Increase Demand Decrease Supply Increases Supply Decreases Substitutes - P(A) D(B) Complements – P(A) D(B) Substitutes – P(A) D(B) Complements – P(A) D(B) Technology , S Taxes, S  Technology , Supply  Taxes , S  Income (Y) Other Related Good’s Prices Demand Increase Demand Decrease Supply Increases Supply Decreases Normal Good - Y D Inferior Good – Y D Normal Good - Y D Inferior Good - Y D Jointly Sup. Price, Supply Comp. Sup. Price, Supply Jointly Sup. Price, Supply  Comp. Sup. Price, Supply  Buyers (Population) Resource Costs Demand Increase Demand Decrease Supply Increases Supply Decreases Population , D Population , D Costs , Supply Costs, Supply  Expectations of a future change in Income or Prices Expectations of Price of Good Sold Demand Increase Demand Decrease Supply Increases Supply Decreases Consumer Incomes , D  Future Prices of good , D Consumer Incomes , D  Future Prices of good , D  Expect Prices of Good , S Expect Prices of Good , S, Market Equilibrium (Shifting and the Effects on Price & Quantity) Demand P&Q  Demand P&Q  Supply P& Q  Supply P& Q   Of Supply & Demand D& S then P uncertain & Q  D& S then P & Q uncertain D& S then P & Q uncertain D& S then P uncertain & Q 