Demand (cons value)
• price prod
• Price other products P Market Income:
• Income • normal product - if income increase also
• Taste S does the demand
• Time R • inferior product - if income increases the
• … demand decreases
Pe
Supply P2
• price prod
• Cost fact product D
• Techniqu as a a
• Time
QD a as as
shortage
• Weather
Excesssupply
If D⬆ = P⬆ Q⬆ If S⬇ = P⬆ Q⬇
r s p
D. Increase D. Decrease
ps S. P❓ P⬇
increase Q⬆ Q❓
S. P⬆ P❓
Decrease Q❓ Q⬇
If D⬇ = P ⬇ Q⬇ If S⬇ = P⬇ Q⬆
s P s
s
D D D
Q Q
Rolex case
S
Brand / taste increases = demand increases
Before: s=D => p0 q0
After p increases and taste increases => S = D1 =>
p1 q1 p⬆ q⬆
• price prod
• Price other products P Market Income:
• Income • normal product - if income increase also
• Taste S does the demand
• Time R • inferior product - if income increases the
• … demand decreases
Pe
Supply P2
• price prod
• Cost fact product D
• Techniqu as a a
• Time
QD a as as
shortage
• Weather
Excesssupply
If D⬆ = P⬆ Q⬆ If S⬇ = P⬆ Q⬇
r s p
D. Increase D. Decrease
ps S. P❓ P⬇
increase Q⬆ Q❓
S. P⬆ P❓
Decrease Q❓ Q⬇
If D⬇ = P ⬇ Q⬇ If S⬇ = P⬇ Q⬆
s P s
s
D D D
Q Q
Rolex case
S
Brand / taste increases = demand increases
Before: s=D => p0 q0
After p increases and taste increases => S = D1 =>
p1 q1 p⬆ q⬆
