Docsity
Docsity

Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity


Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan


Guidelines and tips
Guidelines and tips

Demand and Supply topic of Microeconomics from Advanced placement program., Quizzes of Economics

This has materials for unit 2 of AP Microeconomics.

Typology: Quizzes

2022/2023

Uploaded on 08/15/2023

abhishek-mishra-46
abhishek-mishra-46 🇻🇳

17 documents

1 / 1

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
Demand & Supply Cheat Sheet
Demand Curve Supply Curve
The quantities of a good demanded at a range of prices in a particular time period. The quantity of output a firm produces at the various prices of the good
The Law of Demand The Law of Supply
An inverse relationship between a good’s price and the quantity demanded. A direct relationship between a good’s price and the quantity produced.
Quantity Demanded (Qd) Quantity Supplied (Qs)
A Price is a movement along the Demand curve
A Price effects Quantity Demand not Demand
A in Price is a movement along the Supply
curve
A Price effects Quantity Supplied not Supply
Demand - Downward Sloping Supply – Upward sloping
INCOME EFFECT
P Income buy more
DMU
Consumption utility
SUBSTITUTION EFFECT
P switch to cheaper good
PROFIT EFFECT
P , Profit
COST EFFECT
Supply , Costs
Demand Curve Shift – TRIBE Supply Curve Shift – STORES
Tastes & Preferences Subsidies or # of Sellers
Demand Increase Demand Decrease Supply Increases Supply Decreases
More wanted - Demand Less wanted - DemandSubsidies, S , Firms , SSubsidies, S, Firms, S
Related Goods Prices – Substitutes & Compliments Technology & Taxes
Demand Increase Demand Decrease Supply Increases Supply Decreases
Substitutes - P(A) D(B)
Complements – P(A) D(B)
Substitutes – P(A) D(B)
Complements – P(A) D(B)
Technology , S
Taxes, S
Technology , Supply
Taxes , S
Income (Y) Other Related Good’s Prices
Demand Increase Demand Decrease Supply Increases Supply Decreases
Normal Good - Y D
Inferior Good – Y D
Normal Good - Y D
Inferior Good - Y D
Jointly Sup. Price, Supply
Comp. Sup. Price, Supply
Jointly Sup. Price, Supply
Comp. Sup. Price, Supply
Buyers (Population) Resource Costs
Demand Increase Demand Decrease Supply Increases Supply Decreases
Population , DPopulation , DCosts , SupplyCosts, Supply
Expectations of a future change in Income or Prices Expectations of Price of Good Sold
Demand Increase Demand Decrease Supply Increases Supply Decreases
Consumer Incomes , D
Future Prices of good , D
Consumer Incomes , D
Future Prices of good , D Expect Prices of Good , SExpect Prices of Good , S,
Market Equilibrium (Shifting and the Effects on Price & Quantity)
Demand P&Q Demand P&Q Supply P& Q Supply P& Q Of Supply & Demand
D& S then P uncertain & Q
D& S then P & Q uncertain
D& S then P & Q uncertain
D& S then P uncertain & Q

Partial preview of the text

Download Demand and Supply topic of Microeconomics from Advanced placement program. and more Quizzes Economics in PDF only on Docsity!

Demand & Supply Cheat Sheet

Demand Curve Supply Curve

The quantities of a good demanded at a range of prices in a particular time period. The quantity of output a firm produces at the various prices of the good

The Law of Demand The Law of Supply

An inverse relationship between a good’s price and the quantity demanded. A direct relationship between a good’s price and the quantity produced.

Quantity Demanded (Qd) Quantity Supplied (Qs)

A Price is a movement along the Demand curve A Price effects Quantity Demand not Demand A  in Price is a movement along the Supply curve A Price effects Quantity Supplied not Supply Demand - Downward Sloping Supply – Upward sloping INCOME EFFECT P Income buy more DMU Consumption  utility  SUBSTITUTION EFFECT P switch to cheaper good PROFIT EFFECT P , Profit  COST EFFECT Supply , Costs  Demand Curve Shift – TRIBE Supply Curve Shift – STORES Tastes & Preferences Subsidies or # of Sellers Demand Increase Demand Decrease Supply Increases Supply Decreases More wanted - Demand  (^) Less wanted - Demand Subsidies, S , Firms , S Subsidies, S, Firms, S Related Goods Prices – Substitutes & Compliments Technology & Taxes Demand Increase Demand Decrease Supply Increases Supply Decreases Substitutes - P(A) D(B) Complements – P(A) D(B) Substitutes – P(A) D(B) Complements – P(A) D(B) Technology , S Taxes, S  Technology , Supply  Taxes , S  Income (Y) Other Related Good’s Prices Demand Increase Demand Decrease Supply Increases Supply Decreases Normal Good - Y D Inferior Good – Y D Normal Good - Y D Inferior Good - Y D Jointly Sup. Price, Supply Comp. Sup. Price, Supply Jointly Sup. Price, Supply  Comp. Sup. Price, Supply  Buyers (Population) Resource Costs Demand Increase Demand Decrease Supply Increases Supply Decreases Population , D Population , D Costs , Supply Costs, Supply  Expectations of a future change in Income or Prices Expectations of Price of Good Sold Demand Increase Demand Decrease Supply Increases Supply Decreases Consumer Incomes , D  Future Prices of good , D Consumer Incomes , D  Future Prices of good , D  Expect Prices of Good^ , S^ Expect Prices of Good^ , S,

Market Equilibrium (Shifting and the Effects on Price & Quantity)

Demand  P&Q  Demand  P&Q  Supply  P& Q  Supply  P& Q   Of Supply & Demand D& S then P uncertain & Q  D& S then P & Q uncertain D& S then P & Q uncertain D& S then P uncertain & Q 