Understanding Supply and Demand

Front

Supply

Back

Front

Demand

Back

Front

Law of Supply

Back

as price increases, the quantity supplied increases

&

as price decreases, the quantity supplied decreases

Front

Law of Demand

Back

as price increases, the quantity demanded decreases

&

as price decreases, the quantity demanded increases

Front

Market Equilibrium

Back

Front

Price Elasticity of Demand (formula)

Back

latex="\frac{\%\ \text{change in quantity demanded}}{\%\ \text{change in price}}">

Front

Determinants (Shifters) of Demand

Back

Consumer Tastes & Preferences

Income

Population/Number of Consumers

Price of a Related Good (substitutes, complements)

Future Expectations

Front

Determinants (Shifters) of Supply

Back

Input/Resource Cost

Technology

Number of Sellers

Government Action (taxes, subsidies, regulations)

Future Expectations

Front

Price Floor

Back

Front

Price Ceiling

Back