Scribd Logo
Upload

Welcome to Scribd!

  • 33 views

    Ceteris Determinants Changes

    Uploaded by

    elainelmpadua
    This document discusses the ceteris paribus assumption theory and determinants of supply and demand. It explains that ceteris paribus means "all else being equal" and assumes the determinants of supply and demand remain constant. The determinants of demand include income, population, tastes, price expectations and prices of related goods. Determinants of supply include technology, costs of production, number of sellers, taxes and subsidies, and weather. It distinguishes between changes in demand/supply versus changes in quantity demanded/supplied, and movement versus shifting of curves. Changes in demand/supply involve shifts, while changes in quantity involve movement along curves.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Ceteris Determinants Changes

    Uploaded by

    elainelmpadua
    33 views19 pages
    This document discusses the ceteris paribus assumption theory and determinants of supply and demand. It explains that ceteris paribus means "all else being equal" and assumes the determinants of supply and demand remain constant. The determinants of demand include income, population, tastes, price expectations and prices of related goods. Determinants of supply include technology, costs of production, number of sellers, taxes and subsidies, and weather. It distinguishes between changes in demand/supply versus changes in quantity demanded/supplied, and movement versus shifting of curves. Changes in demand/supply involve shifts, while changes in quantity involve movement along curves.

    Original Description:

    ceters101

    Copyright

    © © All Rights Reserved

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses the ceteris paribus assumption theory and determinants of supply and demand. It explains that ceteris paribus means "all else being equal" and assumes the determinants of supply and demand remain constant. The determinants of demand include income, population, tastes, price expectations and prices of related goods. Determinants of supply include technology, costs of production, number of sellers, taxes and subsidies, and weather. It distinguishes between changes in demand/supply versus changes in quantity demanded/supplied, and movement versus shifting of curves. Changes in demand/supply involve shifts, while changes in quantity involve movement along curves.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    33 views19 pages

    Ceteris Determinants Changes

    Uploaded by

    elainelmpadua
    This document discusses the ceteris paribus assumption theory and determinants of supply and demand. It explains that ceteris paribus means "all else being equal" and assumes the determinants of supply and demand remain constant. The determinants of demand include income, population, tastes, price expectations and prices of related goods. Determinants of supply include technology, costs of production, number of sellers, taxes and subsidies, and weather. It distinguishes between changes in demand/supply versus changes in quantity demanded/supplied, and movement versus shifting of curves. Changes in demand/supply involve shifts, while changes in quantity involve movement along curves.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 19

    CONTINUATION

    SUPPLY AND
    Ceteries Paribus Assumption Theory
    DEMAND
    Determinants of Supply and Demand
    Movement and Shifting of the Curve.

    Ceteris Paribus
    Assumption Theory
    Latin

    Phrase - which means


    assumes all other things equal
    or constant.

    Ceteris Paribus
    Assumption Theory
    The

    determinants of demand
    and supply are constant and
    not considered as factors that
    will affect demand / supply in
    the market.

    Ceteris Paribus
    Assumption Theory
    However

    if the determinants of
    demand and supply greatly
    affects the demand / supply in
    the market then this theory is
    dropped.

    Ceteris Paribus
    Assumption Theory
    Why

    Is It Important in
    Economics? Because, in the real
    world, it's usually hard to isolate all
    the different variables that may
    influence or change the outcome of
    what you are studying and how an
    individual might make a decision.

    Determinants of Demand
    Income
    Population
    Taste

    and Preference
    Price Expectations
    Prices of related goods

    Determinants of Supply
    Technology
    Cost

    of production
    Number of Sellers
    Taxes and Subsidies
    Weather

    Changes in Demand and Supply


    vs Changes in Quantity
    Demanded and Supplied

    Changes in Demand vs Changes


    in Quantity Demanded
    Changes

    in Demand refer to the shift


    of demand curve which is brought about
    by the changes in the determinants of
    demand.
    For instance, an increase in population
    also increases demand for goods and
    services or a decrease in income also
    reduces demand.

    Changes in Demand
    In

    a graph - an increase in demand


    shifts the demand curve to the right
    while a decrease in demand shifts the
    demand curve to the left.

    Changes in Demand vs Changes


    in Quantity Demanded
    Changes

    in Quantity Demanded
    indicate the movement from one point to
    another. This means the demand curve
    does not change its position.
    The change in quantity demanded is
    brought about by changes in price, there
    is a corresponding change in quantity
    demanded.

    Changes in Quantity Demanded


    In

    a graph.

    Changes in Supply vs Changes


    in Quantity Supplied.
    Changes

    in Supply is caused by
    factors other than the price of the
    product.

    Changes in Supply.
    Graphically, it

    involves a shift of the


    supply curve, which implies
    greater/smaller quantities supplied than

    before at the original prices.

    Changes in Supply vs Changes


    in Quantity Supplied.
    Changes

    in Quantity Supplied
    refers to a change in quantity
    offered for sale as a result of a
    change in the price.

    Changes in Quantity Supplied.


    Graphically, the

    change is
    represented by "a movement along
    the supply curve.

    Movement vs Shifting
    of the
    Demand and Supply Curve

    Movement
    Refers

    to a change along a curve. It


    denotes a change in both price & quantity
    demanded / supplied from one point to
    another on the curve. It implies that the
    demand / supply relationship remain
    consistent.
    In other words, it occurs when a change
    in the quantity demanded / supplied is
    caused only by a change in price.

    Shifting
    Occurs

    when a good's quantity


    demanded or supplied changes even
    though price remains the same. Shifts in
    the demand curve imply that the original
    demand relationship has changed,
    meaning that quantity is affected by a
    factor other than price.

    You might also like