supply and demand

• pivot shifts

  1. when there's a change that affects just one industry
• equilibrium

  where demand is equal to supply
• demand

  quantity of goods and services which consumers are willing and able to buy at a given price over a given time period
• shifts in demand

  1. population
  2. advertising
  3. substitutes
  4. income
  5. fashion and trends
  6. interest rates
  7. complements
• revenue


  price x quantity
• supply


  quantity of goods and services which producers are willing and able to sell t any given point over a given time period
• shifts in supply

  1. specialisation causes an increase in supply
  2. workers on strike reduces supply
  3. minimum wage increases decrease supply
  4. Corporation or indirect taxes reduce supply
  5. weather
  6. price of raw materials
• contraction


  movement when quantity decreases
• extension


  when movement increases quantity
• excess supply means

  increased waste which is an added cost and reduces profits