Econ Supply and Demand

Demand definition

Willingess and ability of consumers to buy goods and services at a certain price.

Law of Demand

price increases, demand decreases

Law of Supply

if price of a product goes up, supply will also go up. Same with it it goes down, both go down.

quantity supplied

how many units of a product are made and offered for sale at a particular price.

Vertical Supply

supply cannot increase.

example: vintage car, limited edition, or concert tix.

factors affecting supply

-technology

-weather

-taxes/quotas

-# of sellers

-future prices

demand= buying side of market

supply= selling side of the market.

quantity supply

only changes if what people are willing to pay changes.

Supply

amt of a good or or service that a producer is willing and able to provide at a given price