Demand
Demand is the quantities that people are willing and able to buy at various prices
Law of Demand - Inverse relationship between price and quality demanded
- Change in price changes the change in quantity demanded
Causes of change in demand
- Change in...
- buyers' taste
- # of buyers
- income
- Inferior goods - increase in income -> decrease or no change in demand
- Informal goods - increase in income -> increase in demand
- price of related goods
- Complementary goods - goods that pair well
- Substitute goods - replacement for similar goods
- expectations
Supply
Supply is the quantities that producers or sellers are willing and able to produce at various prices
Law of Supply - Direct relationship between $ and quantity supplied
- Change in price causes a change in quantity supplied.
Causes of change in supply
- Change in...
- weather
- tech
- cost of production
- # of sellers
- taxes/subsidies
- expectations
Why the curve moves left
- Supply down
- Increase in cost of production
- Technology down
- Taxes up
- Subsidies down
- # of sellers down
- Weather conditions are worse
- Supply up
- Cost of production down
- Technology up
- Taxes down
- Subsidies up
- # of sellers up
- Weather conditions are good
David you should clarify in the "why the curve moves right/left" that it is all a "Δ in" also, for your "causes of change in supply" you should note that the change in expectations is by the sellers and not the buyers.
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