Demand-Competition Flashcards
What is demand
Amount of G/S buyers are willing to buy for certain price
What are the six factors that can influence a demand
1)price
2)income
3)price of substitutes/complimentary goods
4)Preferences
5)Number of buyers
6)Another factors
What is substitute and what is complimentary good
Substitute goods that can be substituted for a lower price
Complementary goods use them together” car insurance highway fuel”
Who is who in demand
a) market of production factors
-demand created by company
b)market of G/S
-demand created by household
What does the demand graph show
Show the relationship between the price and quantity demanded
Price goes ⬆️  when demand goes down
Types of demand
1)Individual-1person buying 1 product
2)Market-All willing to buy 1 product
3)Aggregate-all people all products
What is supply
Amount of GS that producers are willing to sell for certain price
Most amount for ⬆️ price
Factors that can influence supply
Price
Price of production factors
Price of alternative goods
Organization of market
Technology used
Another factors Texas weather
Who is who in supply
a)Market of Production factors-supply created by household
b)Market of GS supply-created by Company
Supply Graph
Shows the relationship between the price and quantity supplied
Price goes up supply goes that up
Types of supply
C=company
1)Individual-Company selling 1 product
2)Market-all C Supplying 1 product
3)Aggregate-all C supply all G/S
What is the market
balance = equilibrium
Situation when everything what is produced is sold and each buyer is satisfied
Demand = Supply
Only during short period 
What is balanced price/quantity
Price with which our buyers and sellers satisfied
Balanced quantity means the same amount which is demanded and supplied
Market imbalance is created on the market in two cases
1)price is higher than ideal balanced price > surplus (not all goods are sold)
2) Brass is lower than ideal balanced price > shortage
What is a competition
Fight on the market
Occurs because of various interests
Interests of subject on the market
Household prefer to buy the most for lower price
companies prefer to sell the most for higher price
maximize profit increase amount market share upgrade image
