oil and natural gas are compliments in production; supply curve shifts outward (right)
EX: demand for ketchup if price of hamburger drops
demand up; complements
changes in number of consumers
the more consumers participate in a certain market, the more demand there will be
substitutes in production
must choose between 1 option or the other (ex: Honda can either make a Civic or an Accord); if $ of substitute good goes up, make more of it at expensive of other good; $ of A rises = ↑production A, ↓production B
input
good/service that is used to produce another good/service
quantity demanded
the actual amount consumers are willing to buy a good at some specific price
demand curve
graphed representation of the demand schedule; x-axis is quantity demanded, y-axis is price; slope will always be negative; relationship btw price and quantity demanded
EX: demand for DVD players if price of Blu Ray players drops?
demand down; substitutesf
changes in taste
people want more/less of something at any given time; changes in demand bc Δ... fads, beliefs, cultural shifts; fads come and go; ex: poodle skirts, Mark McGuire Baseball card
to recap...
curves move opposite direction = $ known
curves more same direction = quantity known
for ambiguous values --> depends on which magnitude is larger
