Wednesday, January 21, 2015

Supply and Demand

DEMAND is the quantities that people are willing and able to buy at various prices.
SUPPLY is the quantities that producers or sellers are willing and able to buy at various prices.


  • Elasticity of Demand: tells how drastically buyers will cut back or buy more of a particular good
    • Elastic Demand: A product that is elastic when demand will change greatly when given a small change in price. 
    • Inelastic: product said to be inelastic if your demand for it does not chnage 
      • Milk, gas, medicine. 

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