UNIT 5: DEMAND AND SUPPLY Flashcards
How many main ideas are there in unit 5?
in my opinion, there are 4 main ideas:
- firstly, It talks about the influence of price.
- secondly, It talks about shift-factors
- Thirdly, It mentions the demand curve and supply curve.
- Finally, it talks about equilibrium.
What is THE INFLUENCE OF PRICE?
or
What are the relations between prices and quantity demanded/quantity supplied?
If the price of goods and services increase:
- the quantity demanded will decrease
- and the quantity supplied will increase
- and vice versa.
What is The definition of “demand”?
Demand refers to all possible quantities of a good that BUYERS are willing and able to BUY at all possible prices.
what is the difference between DEMAND and QUANTITY DEMANDED?
How do prices of a good influence its demand?
-> a tricky question^^
If the prices of a good increase, its quantity demanded will decrease and vice versa.
VD: giá thịt gà tăng-> lượng cầu giảm mua ít gà hơn hoặc đi mua cái khác thay thế luôn.
what factors cause the whole demand curve to shift to the left or to the right?
There are 4 shift-factors:
- society’s income,
- prices of other goods,
- expectations
- and tastes.
Can you give an example describes the demand curve shift to the left?
For example:
when society INCOME DECREASE,
people are willing to BUY LESS.
So the demand will decrease.
As a result, The demand curve shift to the left.
Can you give an example describes the demand curve shift to the right?
For example:
when society INCOME increase,
people are willing to BUY MORE.
So the demand will INcrease.
As a result, The demand curve shift to the RIGHT.
what is “supply”?
SUPPLY refers to all possible quantities of a good that SELLERS are willing and able to SELL at all possible prices.
What factors cause the whole supply curve to shift to the left or to the right?
or
What are the supply shift-factors?
They are:
+prices of inputs,
+technology,
+taxes
+and supplier’s expectations.
what is the difference between supply and quantity supplied?
How do prices of a good influence its supply?
If the prices of a good increase, its QUANTITY SUPPLIED will increase and vice versa.
will the supply curve of beer shift to the right or the left if there is an increase in its production costs?
it will shift to the left
Can you give an example describe the supply curve shift to the left?
For example:
when THE PRICE OF INPUT INCREASE,
supplier are willing and able to produce less.
The supply will decrease.
As a result, the supply curve shift to the left.
Can you give an example describes the supply curve shift to the right?
For example:
when THE PRICE OF INPUT DECREASE,
suppliers are willing and able to produce more.
The supply will increase.
As a result, the supply curve shift to the right.
What is the difference between an increase in supply and an increase in quantity supplied?
- An improvement in production technology would cause an increase in supply.
- An increase in price results in an increase in quantity supplied.
What will cause a movement along a given demand curve or supply curve?
A CHANGE IN PRICE:
What will shift the demand curve or supply curve to the left or to the right?
A change in ONE OF THE SHIFT-FACTORS
what is Equilibrium?
is a situation in which there is no tendency for change.
when is a market in equilibrium?
a market is in equilibrium when there is no tendency for the market price of the product to raise or to fall.
What is EQUILIBRIUM PRICE?
is the price at which quantity demanded equals quantity supplied.
What does Demand/Supply Curve show?
The Demand/Supply Curve shows the price influence on buyers.
Summarize unit 5: demand and supply
I will summarize Unit 5. Unit 5 is about Demand and Supply. In my opinion, there are 4 main ideas:
1, Firstly, it talks about THE INFLUENCE OF PRICE:
- If the price of good and services increase:
+the quantity demanded will decrease
+and the quantity supplied will increase and
vice versa.
2, Secondly, it talks about SHIFT-FACTORS:
- shift-factors of DEMAND:
society’s income, prices of other goods, expectations, and tastes.
- shift-factors of SUPPLY:
prices of inputs, technology, taxes, and supplier’s expectations.
3, Thirdly, It mentions DEMAND CURVE AND SUPPLY CURVE:
- A CHANGE IN PRICE: will cause a movement along a given demand curve or supply curve
- A change in ONE OF THE SHIFT-FACTORS: will shift the demand curve or supply curve to the left or to the right.
4, Finally, it talks about EQUILIBRIUM:
- EQUILIBRIUM: is a situation in which there is no tendency for change.
- MARKET IN EQUILIBRIUM: the market in equilibrium when there is no reason for the market price of the product to rise or to fall.
- EQUILIBRIUM PRICE: is the price at which quantity demanded equals quantity supplied.
(Nguồn tham khảo: tài liệu do Giảng viên Phạm Thị Thu cung cấp)
where does Equilibrium occur in graphs?
Equilibrium occurs where the supply and demand curves INTERSECT at an EQUILIBRIUM PRICE.
What are the advantages and disadvantages of excess demand?
If quantity demanded > quantity supplied, this is a shortage => So, Price of goods will increase.
- advantages: the company makes more profits, promote productions.
- disadvantage: it restricts consumption=> it may lead to inflation.
What are the advantages and disadvantages of excess supply?
If quantity supplied > quantity demanded, this is surplus.=> So, the price of goods will decrease.
- Advantages: consumers have to pay less money for goods=> So, encourages the consumptions.
- Disadvantages: profits of companies will decrease=> So it can’t promote production.
