AP Micro 4 by Savannah Julius https://padlet.com/8juliuss/apmicro4 Market Forces of Supply and Demand en-us 2017-09-25 14:08:17 UTC 2026-01-05 16:59:07 UTC hello@padlet.com https://cdn.brainpop.com/math/dataanalysis/supplyanddemand/icon.png Quizlet 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190832383 https://quizlet.com/_3ra7yb ]]> 2017-09-25 14:11:25 UTC https://padlet.com/8juliuss/apmicro4/wish/190832383 Market 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190832846 any institution, mechanism, or arrangement that facilitates the voluntary exchange of goods and services

buyers determine demand
sellers determine supply]]> 2017-09-25 14:12:03 UTC https://padlet.com/8juliuss/apmicro4/wish/190832846 competition 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190833005 price and quantity determined by all buyers and sellers as they interact]]> 2017-09-25 14:12:18 UTC https://padlet.com/8juliuss/apmicro4/wish/190833005 Perfectly Competitive Market 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190833376 1. goods offered for sale are exactly the same
    - homogeneous goods
2. buyers and sellers are so numerous that no single buyer/seller has any influence on market price

buyers & sellers = price TAKERS --> must take market price]]> 2017-09-25 14:12:48 UTC https://padlet.com/8juliuss/apmicro4/wish/190833376 quantity demanded = determinant of the price of the good 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190834180 2017-09-25 14:14:02 UTC https://padlet.com/8juliuss/apmicro4/wish/190834180 law of demand 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190834363 quantity demanded of a good falls when the price of a good rises

inverses!]]> 2017-09-25 14:14:20 UTC https://padlet.com/8juliuss/apmicro4/wish/190834363 law of demand - demand schedule 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190834631 2017-09-25 14:14:45 UTC https://padlet.com/8juliuss/apmicro4/wish/190834631 law of demand - demand curve 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190835268 DECREASING SLOPE]]> 2017-09-25 14:15:47 UTC https://padlet.com/8juliuss/apmicro4/wish/190835268 Market Demand 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190835806 sum of individual demands for a particular good or service

***add the numbers on horizontal axes***]]> 2017-09-25 14:16:42 UTC https://padlet.com/8juliuss/apmicro4/wish/190835806 Determinants of Demand / Shifts in Demand Curve 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190836224 shift to the right = increase in demand
shift to the left = decrease in demand

variables
T - tastes
R - (price of) related goods
I - income
B - (number of) buyers
E - expectations
S - substitutes]]> 2017-09-25 14:17:25 UTC https://padlet.com/8juliuss/apmicro4/wish/190836224 Shift in Demand Curve - Income 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190837534 normal good v. inferior good

normal: income increases, demand for good increases
v. 
inferior: income increases, demand for good decreases]]> 2017-09-25 14:19:32 UTC https://padlet.com/8juliuss/apmicro4/wish/190837534 Shift in Demand Curve - Price of Related Good 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190837696 substitutes v. complements]]> 2017-09-25 14:19:47 UTC https://padlet.com/8juliuss/apmicro4/wish/190837696 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190840928 2017-09-25 14:24:46 UTC https://padlet.com/8juliuss/apmicro4/wish/190840928 law of supply 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190841359 quantity supplied for a good increases when the price of the good rises]]> 2017-09-25 14:25:27 UTC https://padlet.com/8juliuss/apmicro4/wish/190841359 law of supply - supply schedule 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190841593 2017-09-25 14:25:52 UTC https://padlet.com/8juliuss/apmicro4/wish/190841593 law of supply - supply curve 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190842723 INCREASING SLOPE]]> 2017-09-25 14:27:35 UTC https://padlet.com/8juliuss/apmicro4/wish/190842723 Market Supply 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190843230 sum of supplies of all sellers

add quantities... ***add the numbers on horizontal axes***]]> 2017-09-25 14:28:21 UTC https://padlet.com/8juliuss/apmicro4/wish/190843230 Determinants of Supply / Shifts in Supply Curve 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190843819 shift to the right = increase in supply
shift to the left = decrease in supply

variables
T - technology
I - input costs
E - expectations
S - (number of) sellers
or
R - resource or input costs
O - other goods
T - taxes/subsidies
T - technology
E - expectations
N - number of suppliers]]> 2017-09-25 14:29:20 UTC https://padlet.com/8juliuss/apmicro4/wish/190843819 Shifts in Supply Curve - Input costs 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190846455 if the price of an input goes up, production becomes less profitable

if the price of an input goes down, production becomes more profitable]]> 2017-09-25 14:34:02 UTC https://padlet.com/8juliuss/apmicro4/wish/190846455 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190848559 2017-09-25 14:37:35 UTC https://padlet.com/8juliuss/apmicro4/wish/190848559 Equilibrium 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190891162 Quantity Supplied = Quantity Demanded
  • equilibrium price 
  • equilibrium quantity
]]> 2017-09-25 15:49:19 UTC https://padlet.com/8juliuss/apmicro4/wish/190891162 Surplus 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190892101 quantity supplied > quantity demanded
aka excess supply

--> cut prices until equilibrium is reached]]> 2017-09-25 15:50:55 UTC https://padlet.com/8juliuss/apmicro4/wish/190892101 Shortage 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190893003 quantity demanded > quantity supplied
aka excess demand

--> raise prices until equilibrium is reached]]> 2017-09-25 15:52:30 UTC https://padlet.com/8juliuss/apmicro4/wish/190893003 law of supply and demand 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190893708 the price of any good adjusts to bring up the quantity supplied and quantity demanded for that good into balance]]> 2017-09-25 15:53:40 UTC https://padlet.com/8juliuss/apmicro4/wish/190893708 Three Steps 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190894181 1. shift the demand curve, supply curve, or both?
2. shift left or right?
3. how does the shift change equilibrium price and quantity]]> 2017-09-25 15:54:25 UTC https://padlet.com/8juliuss/apmicro4/wish/190894181 vocab 8juliuss https://padlet.com/8juliuss/apmicro4/wish/190894691
  • supply = position on supply curve; representation of all sellers in the market providing goods
  • demand = position on demand curve; representation of everyone in the market willing and able to purchase a good

    • quantity supplied = specific amount suppliers wish to sell
    • quantity demanded = specific amount buyers wish to purchase
    -------------------------
    ...therefore:
    shift = change in supply/demand
    movement along the curve = change in quantity supplied/demanded
    ]]>     2017-09-25 15:55:16 UTC https://padlet.com/8juliuss/apmicro4/wish/190894691     Imperfect Competition 8juliuss https://padlet.com/8juliuss/apmicro4/wish/191066600 monopoly 
    oligopoly
    monopolistic competition (fast food restaurants!)]]>     2017-09-26 00:56:09 UTC https://padlet.com/8juliuss/apmicro4/wish/191066600     stagflation 8juliuss https://padlet.com/8juliuss/apmicro4/wish/191067090 high inflation
    high unemployment
    idle demand in country's economy]]>     2017-09-26 00:59:41 UTC https://padlet.com/8juliuss/apmicro4/wish/191067090     Equilibrium Shift 8juliuss https://padlet.com/8juliuss/apmicro4/wish/191069394 size of shift must be given in order to determine both new quantity and price
    • if not specified, only the new quantity OR new price can be determined
    ]]>     2017-09-26 01:17:10 UTC https://padlet.com/8juliuss/apmicro4/wish/191069394     money prices 8juliuss https://padlet.com/8juliuss/apmicro4/wish/191508441 aka absolute prices
    aka nominal prices

    prices of good measured in units of currency]]>     2017-09-27 02:25:42 UTC https://padlet.com/8juliuss/apmicro4/wish/191508441     relative prices 8juliuss https://padlet.com/8juliuss/apmicro4/wish/191508524 aka real prices

    number of units of any other good Y that must be sacrificed to acquire the first good X]]>     2017-09-27 02:26:40 UTC https://padlet.com/8juliuss/apmicro4/wish/191508524     substitution effect 8juliuss https://padlet.com/8juliuss/apmicro4/wish/191508619 change in quantity demanded that results from a change in the price of one good relative to the price of other goods]]> 2017-09-27 02:27:36 UTC https://padlet.com/8juliuss/apmicro4/wish/191508619 Change in Quantity Demanded 8juliuss https://padlet.com/8juliuss/apmicro4/wish/191509015 2017-09-27 02:31:16 UTC https://padlet.com/8juliuss/apmicro4/wish/191509015 Change in Overall Demand 8juliuss https://padlet.com/8juliuss/apmicro4/wish/191509111 2017-09-27 02:32:04 UTC https://padlet.com/8juliuss/apmicro4/wish/191509111 increase chance of earning more profit... increase supply of product 8juliuss https://padlet.com/8juliuss/apmicro4/wish/191509407 only increase quantity supplied of the product if the price received is high enough to cover the higher marginal cost

    technological improvement usually decreases the marginal cost of producing a good]]>     2017-09-27 02:34:52 UTC https://padlet.com/8juliuss/apmicro4/wish/191509407     Shift on Supply Curve -Tax/Subsidy 8juliuss https://padlet.com/8juliuss/apmicro4/wish/191509755 tax = additional cost of production
    --> decreases supply curve

    subsidy = benefit of production
    --> increase supply curve]]>     2017-09-27 02:37:32 UTC https://padlet.com/8juliuss/apmicro4/wish/191509755     when both supply and demand are changing (the ol' double shift) 8juliuss https://padlet.com/8juliuss/apmicro4/wish/191510020 one outcome is predictable and the other ambiguous]]> 2017-09-27 02:39:46 UTC https://padlet.com/8juliuss/apmicro4/wish/191510020 substitute 8juliuss https://padlet.com/8juliuss/apmicro4/wish/193225941 price of one good goes up, the demand for the substitute good increases]]> 2017-10-02 22:16:10 UTC https://padlet.com/8juliuss/apmicro4/wish/193225941 complement 8juliuss https://padlet.com/8juliuss/apmicro4/wish/193225981 price of one good goes up, the demand for the complement good decreases]]> 2017-10-02 22:16:29 UTC https://padlet.com/8juliuss/apmicro4/wish/193225981 amount in surplus/shortage solved for by taking difference between two quantity (x) values 8juliuss https://padlet.com/8juliuss/apmicro4/wish/193226202
  • surplus for quantity supplied of 80 and price of $80
    • 80-20 = 60 in surplus
  • shortage for quantity demanded at quantity of 80 and price of $20
    • 80-20 = 60 in shortage
    • ]]>     2017-10-02 22:18:08 UTC https://padlet.com/8juliuss/apmicro4/wish/193226202     Problems Often Gotten Wrong 8juliuss https://padlet.com/8juliuss/apmicro4/wish/194117693 https://docs.google.com/document/d/1jam6VBwtFb_K9FX-jxuqdAym4KfXHthduMdYwmlb9Zs/edit ]]> 2017-10-05 00:06:53 UTC https://padlet.com/8juliuss/apmicro4/wish/194117693