Supply and Demand

Demand is the quantities that people are willing/able to buy at various prices.

Causes in Change of Demand

1. Δ in # Buyers

2.Δ in Buyers taste

3. Δ in income: inferior goods & Normal goods 

4. Δ In price related goods: Substitute & Complimentary Goods

5.Δ in expectations 

   

Supply is the quantities that suppliers are willing and able to produce at various prices.                

Causes in change of supply 

1. Δ in# of sellers

2. Δ in Cost of production

3. Δ in weather

4. Δ in Technology

5. Δ in Taxes or Substitutes

6. Δ in Expectations