Econ Unit 2 - Supply and Demand

Acronym for shifters of SUPPLY

T R E A T

Acronym for shifters of DEMAND

T R I P E

The demand curve captures the behavior of

consumers

The supply curve captures the behavior of

suppliers (businesses)

demand curve slopes to the

dirt

supply curve slopes to the

sky

Price always goes on the ____ axis

vertical

Quantity always goes on the ____ axis

horizontal

T in TRIPE

Tastes and preferences

R in TRIPE

(price of) related goods (subs and comps)

I in TRIPE

Income

P in TRIPE

Population (consumer base)

E in TRIPE

(future) expectations in price changes

when something becomes hot and cool and trendy

the demand curve shifts RIGHT

When your income increases and demand increases, this is a

normal good

When your income decreases and demand increases, this is a

Inferior good

“related goods” means

substitutes and complements

First T in TREAT

Technology

R in TREAT

Resource Price and Availability

E in TREAT

Expectations in future profit

A in TREAT

actions by the government (subsidies, taxes, regulations)

second T in TREAT

total number of sellers

when the government imposes fewer regulations on firms

supply curve shifts RIGHT

when Activision merged with Blizzard

the supply curve for video games shift LEFT

when demand shifts right

price increases

when supply shifts left

price increases

subsidy

government payment supports a business or market

increase in demand

Increase in supply

decrease in supply