Miss Blackwell Flashcards
demand
the amount of a good or service that customers are willing to buy at any given price
supply
the amount of a good or service that sellers are willing and able to sell at any given price
equilibrium
the situation in a market where demand is equal to supply (both parties are happy. In theory, customers can buy what they want and shops have no unsold stock
supply curve
up to the sky (going up)
demand curve
down to dirt (going downwards)
income (positive)
if there is a negative impact, it shifts to the right
income (negative)
if there is a negative impact, it shifts to the left
price
the amount customers are willing and able to pay
income (increases)
when income increases the demand goes up
income (decreases)
when income decreases demand goes down
positive influences
demand curve moves to the right
negative influence
demand curve moves to the left
what causes demand shifts?
- income
- population
- price of substitutes
- price of complements
- tastes
increase in demand =
increase of quantity demand of every given price
wealth
demand factors
if someones wealth increases then they will be willing to spend more money
-this will have a positive impact demand and the curve will move to the right
advertising, promotional offers and public relations
demand factors
methods of introducing the product or service to the customer and encourage them to buy it.
Eg. wowcher
taste and fashion
demand factors
what the customers like and dislike
Eg. urban outfitters target specific likes and dislikes
demographic changes (demand factors)
the size and composition of a population or characteristics of human population groups
Eg. Superdry- younger people are starting to wear their clothes not 15-18 year olds
government action
demand factors
to encourage a change they want to see
Eg. Nike- benefit if more people exercised
demand curve will shift to the right due to a positive impact
price of other products
(demand factors)
(substitutes)
- different products used for the same function
- electricity and oil to heat a house
- positive impact for electricity companies resulting in a shift to the right for them
price of other products
(demand factors)
(complements)
- products bought together for demand (one helps the other)
- printer and ink
- positive impact on demand of ink meaning that the curve will move right
supply factors
price
price
supply factors
costs
costs
supply factors
taxes
the government will put a tax in order to raise revenue, or discourage the use of certain products.
Eg. sugar tax
shifts to the left
supply factors
subsidies
may offer money to the company if it is beneficial for the economy
shifts to the right