Prices of consumer goods: most important, reverse

Consumer preferences: govern his consumption choices between substitutes with the same or similar use value

Consumer personal income: moving in the same direction

Prices of substitutes: change in the same direction---rice and steamed buns

Prices of complements: reverse changes---cars and gasoline

Consumer expectations: Expecting price increases, stimulating early purchases; anticipating price decreases, delaying purchases

Other factors (product variety, quality, advertising, geographical location, season, national policies)

Changes in demand: line does not move, moves slightly

Change in demand: demand curve shift, linear movement

The market demand curve is the horizontal sum of all individual consumer demand curves

Product price: everything else remains unchanged, the price and supply of the product itself change positively

Production cost: other things remain unchanged, the product's own cost and supply change inversely

Production technology: Technology determines costs to a certain extent, thereby affecting supply

Expectations: Production This and sellers’ expectations affect supply

Related product prices

Other factors: production factor prices and national policies, etc.

Changes in supply quantity: Everything else remains unchanged - only price is considered, the line does not move, and the line moves

Supply changes: factors other than price, such as cost: supply curve displacement, linear movement

Meaning: Government intervention to set a specific price for a certain product

Goal protects consumer interests or reduces certain producer costs

Impact: Lower than the equilibrium price, it will stimulate consumption, restrict production, reduce supply, increase demand, and result in market shortages

Consequences: Serious queuing, black market transactions, high black market prices, backdoors, disguised price increases by producers, shoddy products, and shortfalls.

Measures: Administrative measures and distribution measures (rationing)

Meaning: The government sets a specific price for a certain product, and transactions can only take place above it; it is a government intervention in the market.

Purpose: To protect the interests of producers or support the development of an industry. For example: my country and some countries or regions in the world adopt price protection policies to support agricultural production and stabilize farmers' income levels.

Impact: Higher than the equilibrium price, it will stimulate production, restrict consumption, and lead to market excess.

Consequences: If there is no government acquisition, there will be disguised price cuts or black market transactions.

Measures: Establish a government procurement and reserve system (price protection should only be implemented on a few agricultural products such as grain)

Definition: Rate of change of demand/rate of change of price (rate of change of dependent variable/rate of change of independent variable = all elasticities)

Calculation formula

basic type

Influencing factors

Relationship to total sales revenue

Definition: The ratio of the relative change in the price of one commodity to the resulting relative change in demand for another commodity is used to determine whether the two commodities are substitutes or complements.

type

Definition: The ratio of the change in demand to the change in consumer income that caused this change, measuring the response of changes in demand to changes in consumer income

type

Definition: Relative changes in price conceal relative changes in supply

type

Influencing factors