Supply and Demand

Supply

producers willingness to sell at a given price

Law of supply

p^ q^ p v q v(down)

Technological advancements

supply shifters

input prices (cost of products used to make said thing)

supply shifters

cost of flower increases : quantity: decreases price: increase

Subsidies

(a payment from the gov to lower prices)

Supply shifters

P(decreases)

Income

demand shifters

inferior goods

when income decreases this product increases in demand

this is like ramen noodles

taste and preferences

demand shifters

subsitutes

demand shiftersd

price of coke:increases demand of pepsi:increases

complements

demand shifter

price of peanut butter: increases demand of jelly:decreases

Price Expectations

demand shifters

if the price is determinded to be lower the demand decreases

# of consumers / population

demand shifters