Man Econ

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  • when supply levels were higher than demand, prices were significantly reduced, lowering the profits realized by merchants. When merchants made less money, they could not afford to pay workers, resulting in high unemployment

    James Steuart
  • Concept of supply and demand as part of a discussion about interest rates in 17th-century England
    The price of any commodity rises or falls, by the proportion of the number of buyers and sellers."

    John Locke
  • Authored the concept of supply and demand as an "invisible hand" that naturally guides the economy
    society where bakers and butchers provide products that individuals need and want, providing a supply that meets demand and developing an economy that benefits everyone.

    Adam Smith
  • Authored the Principle of Economics
    he developed the demand and supply curve that is used to demonstrate equilibrium.
    Alfred Marshall
  • Demand(D) refers to the behavior of people with regard to their willingness and ability to buy products at given prices.
  • The amount of goods and services people are willing to buy and consumer refer to the quantity demanded (Qd)
  • WHEN THE PRICE OF THE COMMODITY INCREASES, QUANTITY DEMAND DECREASES, AND AS THE PRICE OF COMMODITY DECREASES, QUANTITY DEMAND INCREASES”

    LAW OF DEMAND
  • ASSUMING OTHER THINGS CONSTANT, PRICE AND QUANTITY DEMANDED ARE INVERSELY PROPORTIONAL
    CETERIS PARIBUS ASSUMPTION
  • A DEMAND SHIFTER IS A CHANGE THAT SHIFTS THE DEMAND CURVE FOR A PRODUCT
    DEMAND SHIFTS
  • GOODS THAT ARE CONSUMED TOGETHER
    Complements good
  • GOODS WHERE YOU CAN CONSUME ONE IN PLACE OF THE OTHER
    Substitute goods
  • WHEN THE PRICE OF A GOOD THAT COMPLEMENTS A GOOD DECREASES, THEN THE QUANTITY DEMANDED OF ONE INCREASES AND THE DEMAND FOR THE OTHER INCREASES.
  • WHEN THE PRICE OF A SUBSTITUTE GOOD DECREASES, THE QUANTITY DEMANDED FOR THAT GOOD INCREASES, BUT THE DEMAND FOR THE GOOD THAT IT IS BEING SUBSTITUTED FOR DECREASES.
  • A normal good is a good that experiences an increase in its demand due to a rise in consumers' income.
  • Inferior goods are the opposite of normal goods. Inferior goods are goods that see their demand drop as consumers' incomes rise.
  • THE LAW OF SUPPLY 

    AS THE PRICE OF THE COMMODITY INCREASES, QUANTITY SUPPLY INCREASES AND AS THE PRICE OF THE COMMODITY DECREASES, QUANTITY SUPPLY DECREASES. “
  • A MARKET IS GENERALLY COMPOSED OF BUYERS (CONSUMERS) AND SELLERS (PRODUCERS OR SUpPLIERS).
  • THERE IS SHORTAGE WHEN DEMAND EXCEEDS SUPPLY
  • SURPLUS HAPPENS WHEN SUPPLY EXCEEDS DEMAND
  • WHEN THE QUANTITIES OF DEMAND AND SUPPLY ARE EQUAL, IT IS CALLED EQUILIBRIUM.