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Demand Supply by Mind Map: Demand Supply

1. Law Of Diminishing Marginal Utility

1.1. Consume more, Less hapiness

2. Assumptions

2.1. Large no. of sellers and buyers

2.2. Perfect market information

2.3. Homegenous products

2.4. No barriers to enter or exit

3. Utility

3.1. Level of satisfaction

4. Laws

4.1. Law of demand

4.1.1. Price and quantity demanded are inversely related

4.2. Law of supply

4.2.1. Price and quantity supplied are directly (positively) related

5. Consumer suplus

5.1. Sun of diff between highest prices ppl willing and able to pay and actual price paid

6. Determinants of demand

6.1. Chgs in taste & pref of consumers

6.2. Income levels

6.3. Govn policies

6.4. Weather

6.5. Interest rates

6.6. Size of market

6.7. Market of related goods

7. Complements

7.1. Goods consumed tgt

7.1.1. Laptop and mouse

8. Substitutes

8.1. Alternative goods that satisfy same need or want

8.1.1. coffee and tea

9. Producer surplus

9.1. Sun of diff between actual price they receive from sale of a good and lowest price they are willing and able to sell

10. Determinants of supply

10.1. Non-price factors

10.1.1. Price of factor inputs

10.1.2. Government policies Taxes Specific Ad valorem

10.1.3. Tech levels

10.1.4. Weather

10.1.5. Markets for related goods

10.1.6. No of sellers

10.1.7. Expectation of future prices