Supply and Demand, Law of Demand,Law of Supply, Equilibrium

ECON 519

DATE: 10/27/09

JOSE CINTRON,MBA

The power of supply and demand was understood to some extent by several early Muslim economists who said:

"If desire for goods increases while its availability decreases, its price rises. On the other hand, if availability of the good increases and the desire for it decreases, the price comes down."

SUPPLY AND DEMAND HISTORY

Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy.

Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship.

Suppy and Demand

Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand.

SUPPLY AND DEMAND

The law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good.

The amount of a good that buyers purchase at a higher price is less because as the price of a good goes up, so does the opportunity cost of buying that good.

The Law of Demand

Like the law of demand, the law of supply demonstrates the quantities that will be sold at a certain price. But unlike the law of demand, the supply relationship shows an upward slope. This means that the higher the price, the higher the quantity supplied. Producers supply more at a higher price because selling a higher quantity at a higher price increases revenue.

The Law of Supply

When supply and demand are equal (i.e. when the supply function and demand function intersect) the economy is said to be at equilibrium. At this point, the allocation of goods is at its most efficient because the amount of goods being supplied is exactly the same as the amount of goods being demanded

Equilibrium

CURVA DE LA DEMANDA

FUNCION DE LA DEMANDA

Cantidad de un producto X demandado

= Qx =

f (precio del prod x, precios de bienes substitutos, cambios de precio esperados, ingreso del consumidor, gusto, etc.)

Q= a1P + a2PI + a3I + a4 Pop + a5i + a6A

CURVA DE LA OFERTA

FUNCION DE LA OFERTA

Cantidad de un producto X oferta.

= Q =

f (precio de X, precio de bienes substitutos, estado actual de tecnologia, clima, etc)

Q= b1P + b2Psuv + b3W + b4S + b5S + b6i

DEMANDA Y SUMINISTRO

P: PrecioQ: CantidadS: SuministroD: Demanda

PUNTO DE EQUILIBRIO

A change in any variable other than price that influences quantity demanded produces a shift in the demand curve or a change in demand.

Factors that shift the demand curve include:◦ Change in consumer incomes◦ Population change◦ Consumer preferences◦ Prices of related goods:

Shift in the Demand Curve

Shift in the Demand Curve

This demand curve has shifted to the right. Quantity demanded is now higher at any given price.

A change in any variable other than price that influences quantity supplied produces a shift in the supply curve or a change in supply.

Factors that shift the supply curve include:

◦ Change in input costs◦ Increase in technology◦ Change in size of the industry

Shift in the Supply Curve

Shift in the Supply Curve

For an given rental price, quantity supplied is now lower than before.

Equilibrium After a Supply Shift

The shift in the supply curve moves the market equilibrium from point A to point B, resulting in a higher price and lower quantity.

SUMINISTRO Y DEMANDA MUNDIAL DE PETRÓLEO

Conjeturas sobre el suministro mundial de petróleo y gas varían en función de la fuente. La gran mayoría de los pronósticos calculan que existen suficientes reservas de petróleo para satisfacer la demanda durante los próximos 20 a 25 años.

Desde 1981, se ha consumido en el mundo más petróleo del que se ha descubierto. Actual 4x1.

Necesario aplicar un proceso más integral y complejo para encontrar perforaciones y maximizar rendimiento del suministro.

AUMENTO EN LA DEMANDA

• Ante la inestabilidad de las relaciones políticas entre los Estados Unidos y países como Irak, Arabia Saudita, Irán, Venezuela y Rusia es fundamental que Estados Unidos no dependa tanto de la demanda del petróleo extranjero.

• Se espera que la demanda mundial de petróleo aumente un 54 por ciento hasta el 2025 aumentando déficit del suministro.

• Gran parte del crecimiento de la demanda, el 40 por ciento, provendrá de Asia (china e India). Se espera que su necesidad diaria de petróleo se duplique hacia 2025.

En 2004, China superó a Japón como el segundo mayor consumidor mundial de petróleo, con un promedio de 6,63 millones de barriles al día.

Se espera que la demanda de petróleo de China siga aumentando a razón de en un cinco a siete por ciento anual contribuyendo a la baja de suministro.

China superará la demanda de los Estados Unidos como el mayor consumidor mundial de petróleo.

SUMINISTRO Y DEMANDA DE PETROLEO A NIVEL MUNDIAL.

La Agencia Internacional de la Energía, prevé un nivel máximo de producción y suministro mundial entre 2013 y 2037 y luego escases. Sin embargo;

El Centro de Análisis del Agotamiento del Petróleo publicó recientemente un estudio que pronosticaba una drástica reducción del suministro durante el curso de los próximo años.

Demanda y Suministro

Este significativo aumento de la demanda no puede darse sin que provoque graves consecuencias en el suministro.

No creemos que la demanda vaya a disminuir de forma drástica, pensamos que a medida que la demanda siga superando el suministro, y dado que la demanda del producto es inelástica, los precios del petróleo y el gas en el mercado sufrirán un aumento de corto a largo plazo.

Conclusión

Suministro y Demanda Mundial, Retrieved on October 27,2009 from;

http://ieneurope.com/esp/oil-and-gas-investing.php

Powerpoint Presentation -- Supply and Demand ,Retrieved on October 27,2009 from

http://www.econweb.com/MacroWelcome/sandd/ppt/index.ht

REFERENCIAS