Demand Supply

Demand Supply and Price Determination ( Demand ) ( Effective Demand ) ( Want ) ( Purchasing Power ) ( Ability and Willingness ) ( Individual Demand ) ( Firm Demand ) ( Industry or Market Demand ) ( Aggregate Demand ) ( External or Foreign Demand )

( Demand Function ) QDx = f ( Px ) ( ) ( ) ( Law of Demand ) ( inverse relation )

( Income Effect ) ( Substitution Effect ) ( Law of Diminishing Marginal Utility ) ( Income Effect ) ( Real Income ) ( Money Income ) =

( Substitution Effect ) Pepsi - Coca Cola - DTAC - AIS ( Relative Price )

AIS DTAC ( Law of Diminishing Marginal Utility ) ( Demand Equation ) QDx = 10 - 2 P

( Demand Curve ) : Slope ( Demand Determinants )

( Direct Determinants ) ( Indirect Determinants ) QDX = f ( PX, A1, A2, .., AN ) PX A1 1 A2 2 AN N( Changes in Quantity Demanded ) ( ) P1P2Q1Q2D1D2 P1 Q1 P2 Q2 D1 D2 ( Shifts in Demand Curve ) Shift Shift - ( Shift )P1P2Q1Q2D1D2DDD1 D2 Q1Q2 - ( Shift )P1P2Q1Q2D1D2DD1DD2Q1Q2 ( Normal Goods ) ( Inferior Goods ) ( Substitution Goods ) ( Complementary Goods ) ( Normal Goods ) .. ( Inferior Goods ) ( Substitution Goods ) - - - --.

- - - ( Individual Demand ) ( Market Demand )

532 ( Supply ) ( Supply Function ) QSx = f ( Px ) ( ) ( ) ( Law of Supply )

( Supply Equation ) QSx = 10 + 2 P, QSx = 10 + 2 P2 Slope

(Supply Curve ) : Slope ( Supply Determinants ) ( Direct Determinants ) ( Indirect Determinants ) QSX = f ( PX, B1, B2, .., BN ) PX B1 1 B2 2 BN N( Changes in Quantity Supplied ) ( ) ( Move along the curve ) P1 Q1 P2 Q2 S1 S2 P1Q1S1P2Q2S2( Shifts in Supply Curve ) Shift Shift S1S2Q1P1 Q2 P1 Q1 Q2 ( increase in supply )S1S2Q1P1 Q2 P1 Q1 Q2 ( decrease in supply ) ( Price Determination and Market Equilibrium ) QDx = QSx SQequilibriumPequilibrium ED QDx = 800 - 2 PX QSx = 200 + 4 PX QDx = a - b PX QSx = c + d PX a, b, c, dNote: ( Excess Supply and Excess Demand ) SQequilibriumPequilibrium EDPQSExcess SupplyQDSQequilibriumPequilibrium EDPQSExcess DemandQD QDx = 400 - 2 PX QSx = 100 + 4 PX 40 55 ( Change in Equilibrium ) 1 D S E Presenter ( ) SQPEDPQD 1E 2 D S ( ) SQPEDPQD 2E 3 D S E SQPEDPQS 3E 4 D S E ( ) SQPEDPQS 4E 5 D S SQPEDPQS 5EE*DQ*P*SQPEDOOPEQ

AIS DTAC AIS DTAC

12,00010,00012,000 / 10,000 = 1.2

14,00010,00014,000 / 10,000 = 1.4

Sheet15042342618

Sheet1 0754161053210203.51.505302002400000