Scarcity & Tradeoffs
Market Graphs (Supply, Demand, etc.)
Government Intervention in Market
Firm Graphs (Fixed, Variable, Marginal Cost, etc.)

Shifters of Demand

change in demand refers to the line shifting left or right due to a change in the relationship between the price of a product and the quantity demanded. 

The shifters

Demand will increase...Demand will decrease...
...if expected future prices increase.

Chad will want to buy white sneakers ASAP if they're expected to rise in price soon.
...if expected future prices decrease.

Chad is chill with waiting to buy his white sneakers if he anticipates they'll drop in price soon.

normal good is a good that consumers buy more of when their income increases.

Demand will increase...Demand will decrease...
...for a normal good if income increases.

If Chad's income increases, he's going to have more to spend on brand-new white sneakers.
...for a normal good if income decreases.

If Chad's income decreases, he's going to have less to spend on brand-new white sneakers.

An inferior good is a good that consumers buy less of when their income increases.

Demand will increase...Demand will decrease...
...for an inferior good if income decreases.

If Chad's income decreases, he's going to conserve his money and settle for ramen more often for meals.
...for an inferior good if income increases.

If Chad's income decreases, he's going to spend money on better meals than ramen.
Demand will increase...Demand will decrease...
...if consumer taste increases.

Chad will want to buy white sneakers more if his favorite influencer starts repping them.
...if consumer taste decreases.

Chad will be less inclined to buy white sneakers if none of his favorite influencers wear them.

substitute is a good that consumers see as essentially the same to another good.

Demand will increase...Demand will decrease...
...if substitutes increase in price.

If black sneakers (the substitute) increase in price, Chad will be more inclined to stick with his white sneakers.
...if substitutes decrease in price.

If black sneakers (the substitute) decrease in price, Chad may consider purchasing them instead of white sneakers.

complement is a good that is used in combination with another good.

Demand will increase...Demand will decrease...
...if complements decrease in price.

If fresh white laces (the complement) decrease in price, Chad will be more inclined to stick with his white sneakers.
...if complements increase in price.

If fresh white laces (the complement) increase in price, Chad may consider purchasing loafers.
Demand will increase...Demand will decrease...
...if the number of buyers increases.

If Chad influences all his friends to buy white sneakers, there will be more demand for them.
...if the number of buyers decreases.

If Chad discourages his friends from buying white sneakers, there will be less demand for them.
Demand will increase...Demand will decrease...
...if taxes decrease.

If taxes get lowered on white sneakers, Chad will demand them more.
...if taxes increase.

If taxes increase on white sneakers, Chad will demand them less.
...if subsidies increase.

If Chad has more disposable income from government subsidies, he'll have less demand for white sneakers.
...if subsidies decrease.

If Chad receives less disposable income from government subsidies, he'll have less demand for white sneakers.

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