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Demand and supply graphs, equilibrium, shifts etc
Demand
People that want the item or service
Supply
Firms that provide the item or service
Law of supply
As price increases, quantity supplied increases, as price decreases, quantity supplied decreases.
Law of demand
If price goes up people buy less, if price goes down people buy more.
What is equilibrium
Where demand and supply are perfectly matched
What is Disequilibrium
When supply is not equal to demand in a market
what causes a shift on the demand curve
Consumer tastes, advertising, quality, and income
Quantity Demanded
the amount of a good or service that a consumer is willing and able to purchase at a given price
Complementary goods
Is something where people normally buy them together for example car and petrol
Substitute goods
Where a good can be replaced by something else for example an apple and orange.
factors affecting the shift of a supply curve
Cost of production, changes in technology, numbers of producers in the market, weather, tax, and subsidies.
Ceteris Paribus
All things being equal
Value added tax (VAT)
A tax on items that you purchase
Excess demand
Where demand is greater than supply and there are shortages
Excess supply
Where supply is greater than demand and there are unsold goods in the market
Derived demand
Derived demand is the demand for a good resulting from the demand for another good
Price mechanism
allocates resources efficiently through supply and demand.
Extension demand
Quantity demanded increases as price falls, moving along the demand curve.
what causes movement along the demand curve
price changes, affecting quantity demanded.
Quantity supplied
is the amount producers sell at a given price.
Shortage
A situation in which quantity demanded is greater than quantity supplied
Surplus
the condition where the quantity supplied exceeds the quantity demanded at a given price.
Market supply
The sum of supply from all the producers in the market
Market demand
The sum of demand from all the consumers in the market
effective demand
The desire for a good or service backed by an ability to pay
interest rates
Cost of borrowing money
Note 
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