Normal good-Increase in income causes increase in demand
Inferior good- increase in income causes fall in demand
Complementary goods- burger and fries
Substitute goods- mustard for ketchup
Supply is quantity producers/ sellers are willing to produce at varying prices.
Law of Supply- Direct relationship between price and quantity supply
Causes of a Change in Supply
Δ Technology
Δ Weather
Δ Cost of Production
Δ # of Sellers
Δ Taxes/ Subsidies(Govt $$)
Δ Expectation
No comments:
Post a Comment