Supply and Demand

Goods Market:

Money is flowing from households to firms

Goods are flowing from firms to households

Factor Markets:

Factors are going from households to firms

Money is flowing from firms to households

lucia & Ajay @ 2 is 8

lucia & Ajay @ 3 is 5

lucia, ajay, and joe @ 2 is 11

lucia, ajay, and joe @ 2 is 7

increase in consumers to shift the demand curve left

  • population of cons

  • Income (normals goods)

  • preferences/tastes

  • expectationds of once in future

  • price of a substitute increases

  • price of compliment decgreases

  • wealth

  1. right shift

  2. moving up the cure

  3. left shift

  4. left shift

  5. right shift

  • number of supplies

  • improvement in tech

  • cost of inputs decrease

  • price of a substitute good in production decreases

  • expectation (prices future decreases)

  1. right shift

  2. move down on the curve