AP Macro Supply and Demand

Increase in demand shifts…

right consumers want more

Decrease in demand shifts…

left consumers wish to purchase less

Tates

good that is popular

popular good would shift the demand curve

right

unpopular good would shift the demand curve

left

normal good

demand increases as consumers income raised

inferior good

demand decreases as a consumers income rises

substitute increase for demand 

the price of a good will cause an increase in demand for its substitute 

substitute decrease for demand

decrease in the price of a good will cause a decrease in the price of demand for a substitute

an increase in the price of a good could cause a (blank) in a demand for its compliment

decrease

a decrease of a price of a good will cause an (blank) for its compliment

increase

more consumers 

more demand

less consumers

less demand

if consumers expect higher prices in the future there will be an (blank) in demand

increase

lower prices in the future will cause a (blank) in demand

decrease

increase in supply shifts…

right

decrease in supply shifts…

left

if the cost of any resource (land, labor, or capital) decreases, supply will

increase

if the cost of any resource (land, labor, capital) increase supply will

decrease

better technology efficiency will cause an

increase in supply

Events / conditions can cause

cause an increase or decrease in supply

quotas/tariffs

decrease in supply

firms producing the same or similar products will cause an…

increase in supply

If producers expect higher prices in the future there will be a

decrease in supply

if producers expect lower prices in the future there will be an

increase in supply

Demand

refers to the entire relationship between various prices and quantities of a good or service that consumers are willing and able to buy

quantity demanded

is a specific point on the demand curve, representing the exact amount purchased at a single, particular price