Demand A Schedule Showing the Consumers are Willing and Able to Purchase At a Specified Set of Prices During A Specified Period of Time Amounts of a Good Chapter 3: Demand and Supply

Price Quantity/ unit of time D

Price Quantity Demanded $ Per Unit of Time A Demand Schedule

0,$10 1,$8 2,$7 3,$6 4,$4 5,$3 6,$1

1,$8 2,$7 3,$6 4,$4 6,$1 0,$10 Demand 5,$3

A Schedule Showing the Amounts of a Good At a Specified Set of Prices During A Specified Period of Time Supply Producers Are Willing and Able to Place on the Market

Price S Quantity/ unit of time

Price Quantity $ Per Unit of Time A Supply Schedule Supplied 6 5 4

0,$1 1,$3 2,$4 3,$6 4,$7 5,$8 6,$10

Supply 1,$3 2,$4 3,$6 5,$8 0,$1

Equilibrium Demand and Supply Conditions

Equilibrium Conditions Price $ Quantity Demanded Quantity Supplied Equilibrium

0,$10 1,$8 2,$7 3,$6 4,$4 5,$3 6,$1 0,$1 1,$3 2,$4 4,$7 5,$8 6,$10 Supply Demand

Price Quantity/ unit of time D S

Price Quantity/ unit of time D S Q* P* Equilibrium Price & Quantity

Price Quantity/ unit of time D S Q* P* o o P Q D n n 1 2 P up, Q up Shift in Demand

Price Quantity/ unit of time D S Q* P* o o 1 Shift in Demand Q P n P down, Q down 2 D n

Shifters of the Demand Curve 1. Number of Consumers 2. Consumer Income 3. Consumer Tastes and Preferences 4. Consumer Expectations 5. Prices of Substitute And Complementary Goods

Price Quantity/ unit of time D S Q* P* o o P Q D n n 1 2 P up, Q up Shift in Demand Income increases

Price Quantity/ unit of time D S Q* o 1 Shift in Demand D 2 Q n P down Q down Income Decreases P* o n P

Shifters of the Supply Curve 1. Number of Producers 2. Costs of Production 3. Producer Expectations 4. Prices of Related Goods 5. Technology

Price Quantity/ unit of time D S S o n Q Q o n New Technology Shifts Supply Curve to the Right Price Down, Quantity Up P* o n P