SUPPLY AND DEMAND - SUMMARY

DEMAND:

A behavioral description of the amount of a good that consumers as a group will buy at each and every price, if that price should prevail, other things equal (constant).

–Inverse relationship
–Utility-related
–Marginal buyer
–Change (shift) in demand: different P, same Q_d ; same P, different Q_d

SUPPLY:

A behavioral description of the amount of a good that producers (sellers) as a group will produce and sell at each and every price, if that price should prevail, other things equal (constant).

–Direct relationship
–Cost-related
–Marginal producer/seller
–Change (shift) in demand: different P, same Q_s ; same P, different Q_s

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