Supply and Demand

• PASIFIC

  Population, Advertising, Substitutes, Interest, Fashion, Income and Complements
• PINTSEGWC

  Productivity, Indirect taxes, Number of firms in the market, Technology, Subsidies, Expected price changes, Goods in joint supply, Weather and Costs of production
• Effective Demand


  When a consumer's desire to buy a product is backed up by an ability to pay for it
• Derived Demand


  Demand that comes as a result of demand for something else eg. the demand for machinery is derived from the demand for consumer goods
• Total Revenue


  The amount of money earned by selling output TR = P * Q
• Competitive Supply


  Alternative products a firm could make with its resources eg. a farmer can plant carrots or potatoes on their land
• Supply Chain


  Different stages of making, distributing and selling a good or service
• Disequilibrium


  When there is excess demand due to low market prices or excess supply due to high market prices
• Shortage


  A situation in which the quantity demanded is greater than the quantity supplied
• Excess Demand


  When there are market shortages and consumers want to buy a good

  
• Excess Supply


  When firms supply more than consumers are willing to buy

  
• Demand


  Quantity of a good or service that consumers are willing and able to buy at a given price in a given period.