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GENESEE ACADEMY SOCIAL SCIENCE

NOTES LESSON 5

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BY: CHAUNTE JONES

ECONOMICS LESSON 5

 

SUPPLY AND DEMAND - WHAT IS THERE
                                             WHAT IS WANTED (NEEDED)

 

NOT EVERYTHING THATS THERE IS WHATS NEEDED
 
SUPPLY AND DEMAND CURVE

 

 -HIGH PRICES - DEMAND IS LOW, SUPPLY IS HIGH
-
LOW PRICES- SUPPLY IS LOW, DEMAND IS HIGH

 

-EQUALIBRIUM- WHERE SUPPLY = DEMAND (EVERYONE IS SATISFIED)

 

COMPLEMENTARY GOODS
          GOODS THAT ARE USED TOGETHER
               -BUY ONE, EXPECTED TO BUY ANOTHER
 EX: CAR/GAS
      HOT DOG/BUNS
 

 

SUBSTITUTE GOODS
        GOODS THAT CAN REPLACE EACHOTHER

 

DEMAND CHANGE FACTOR
1. CHANGE IN CONSUMER EXPECTED (BUY OUT OF EXPECTATION)
2. CHANGE IN CONSUMER TASTE
3. CHANGE IN THE # OF COMSUMERS IN THE MARKET
4. CHANGE IN INCOME
5. CHANGE IN THE PRICE OF A SUBSTITUTE GOOD
6. CHANGE IN THE PRICE OF A COMPLEMENTARY GOOD

 


ELASTICITY
   DEMAND CHANGES WITH PRICES
PRICE GOES UP, DEMAND GOES DOWN           
 
INELASTICITY
PRICE GOES UP OR DOWM, DEMAND DOES NOT CHANGE
        

 
 
 
 
"We hold these truths to be self-evident, that all men are created equal,..." Declaration of Independence, 1776