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The Basic Element
of Supply and
Demand

Supply
-is the amount of something that is
available 

Demand
-is how much of that thing people want to
buy 

A
...
The Supply Schedule
C
...
The Demand Schedule

-It shows the definite relationship
between the market price of a good and
the quantity demanded of that good
...

At a lower price more cornflakes are bought
...
Yet at a lower price (P) equal to 135 pesos, the
quantity demanded (Q) is still greater, at 12 million boxes
...


The demand
curve

The graphical representation of the
demand schedule



Quantity of cornflakes (millions of boxes per year

Law of downward-sloping demand
When the price of a commodity is raised
(and other things are held constant), buyers
tend to buy less of the commodity
...
constant, quantity demanded increases
...




INCOME EFFECT: A change in the demand of
a good or service, induced by a change in
the consumers' discretionary income
...
 That is when the price of
a commodity remains constant and the
other things which can affect the demand of
the commodity changes, a shift can be
found in the demand curve
...


B
...


The supply curve
Supply schedule
(1)
Price
(₱ Per box)

for cornflakes

(2)
Quantity Supplied
(millions of boxes per year)

A

5

18

B

4

16

C

3

12

D

2

7

E

1

0

As the price of cornflakes increases, ever more
cornflakes will be produce

Supply curve

Some factors that can cause a supply curve to
shift:


Cost of production- One major element underlying the supply curve
and determine by:



Prices of inputs- Labor, energy, or machinery
...




Prices of related goods-As one production substitute price rises, the supply of
another substitute will decrease



Government policy-Government intervention can have a significant effect on
supply
...
Supply increases
(or decreases) when the amount of supplied increases
(or decreases) at each market

Supply curve shift

Some factors that can cause a supply
curve to shift:
Prices of other goods
 Number of sellers
 Input prices
 Technological advances
 Government policies


C
...
e
...


Demand and Supply shift table

Supply, Demand, and
Immigration
Immigration into a region, shifts the
supply curve for labor to the right and
pushes down wages

Rationing by Price


The market place through the interaction of
supply and demand, does the rationing
...
investopedia
...
a
sp



http://www
...
com/econ/micro/supply/curve /



Source: Boundless
...
” Boundless Marketing
...
2015
...
2015
from https://www
...
com/marketing/textbooks/boun
dless-marketing-textbook/pricing-8/demand-analysis59/the-influence-of-supply-and-demand-on-price-294-4083/



Wikipedia



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