DEMAND AND SUPPLY CURVES OF DEMAND AND SUPPLY CURVES OF CHINESE RESTAURANTS IN CHINESE RESTAURANTS IN

BANGALOREBANGALORE

DEMAND AND SUPPLY CURVES OF DEMAND AND SUPPLY CURVES OF CHINESE RESTAURANTS IN CHINESE RESTAURANTS IN

BANGALOREBANGALORE

PRESENTED BYPRESENTED BYPARAMJEET PARAMJEET PRIYANKAPRIYANKASHIVANISHIVANISHREYA SHREYA

JYOTIJYOTIVIDYAVIDYA

PRESENTED BYPRESENTED BYPARAMJEET PARAMJEET PRIYANKAPRIYANKASHIVANISHIVANISHREYA SHREYA

JYOTIJYOTIVIDYAVIDYA

MOVEMENT ALONG THE DEMAND CURVE FOR DISHES MOVEMENT ALONG THE DEMAND CURVE FOR DISHES AT CHINESE RESTAURANTAT CHINESE RESTAURANT

MOVEMENT ALONG THE DEMAND CURVE FOR DISHES MOVEMENT ALONG THE DEMAND CURVE FOR DISHES AT CHINESE RESTAURANTAT CHINESE RESTAURANT

THERE IS AN INCREASE IN THE PRICE OF THE OF CHINESE FOOD DUE TO WHICH THE DEMAND FOR THE DISHES OF CHINESE RESTAURANTS DECREASED

FACTORS FACTORS FACTORS FACTORS

• INCOME

• TASTE AND PREFRENCES

• INCREASE IN POPULATION

• PRICE OF SUBSTITUTES

• INCOME

• TASTE AND PREFRENCES

• INCREASE IN POPULATION

• PRICE OF SUBSTITUTES

SHIFT OF DEMAND CURVE TO RIGHT FOR SHIFT OF DEMAND CURVE TO RIGHT FOR DISHES AT CHINESE RESTAURANTDISHES AT CHINESE RESTAURANT

SHIFT OF DEMAND CURVE TO RIGHT FOR SHIFT OF DEMAND CURVE TO RIGHT FOR DISHES AT CHINESE RESTAURANTDISHES AT CHINESE RESTAURANT

SHIFT OF DEMAND CURVE TO RIGHT FOR DISHES AT SHIFT OF DEMAND CURVE TO RIGHT FOR DISHES AT CHINESE RESTAURANTCHINESE RESTAURANT

SHIFT OF DEMAND CURVE TO RIGHT FOR DISHES AT SHIFT OF DEMAND CURVE TO RIGHT FOR DISHES AT CHINESE RESTAURANTCHINESE RESTAURANT

Suppose that the price of pizza rises. What happens to the market for Chinese food?

Will this affect the demand or supply curve?

Pizza is a substitute for Chinese food, so Chinese food the price of pizza affects the demand curve

In what direction will the affected curve move?

The price of pizza, a substitute, INCREASES, so the demand for Chinese food INCREASES, or the demand curve shifts right.

•

Suppose that the price of pizza rises. What happens to the market for Chinese food?

Will this affect the demand or supply curve?

Pizza is a substitute for Chinese food, so Chinese food the price of pizza affects the demand curve

In what direction will the affected curve move?

The price of pizza, a substitute, INCREASES, so the demand for Chinese food INCREASES, or the demand curve shifts right.

•

SHIFT OF DEMAND CURVE TO LEFT FOR DISHES AT SHIFT OF DEMAND CURVE TO LEFT FOR DISHES AT CHINESE RESTAURANTCHINESE RESTAURANT

SHIFT OF DEMAND CURVE TO LEFT FOR DISHES AT SHIFT OF DEMAND CURVE TO LEFT FOR DISHES AT CHINESE RESTAURANTCHINESE RESTAURANT

SHIFT OF DEMAND CURVE TO LEFT FOR SHIFT OF DEMAND CURVE TO LEFT FOR DISHES AT CHINESE RESTAURANTDISHES AT CHINESE RESTAURANT

SHIFT OF DEMAND CURVE TO LEFT FOR SHIFT OF DEMAND CURVE TO LEFT FOR DISHES AT CHINESE RESTAURANTDISHES AT CHINESE RESTAURANT

Suppose that the price of pizza falls. What happens to the market for Chinese food?

Will this affect the demand or supply curve?

Pizza is a substitute for Chinese food , so the price of pizza affects the demand curve

In what direction will the affected curve move?

The price of pizza, a substitute, DECREASES, so the demand for Chinese food DECREASES, or the demand curve shifts left.

Suppose that the price of pizza falls. What happens to the market for Chinese food?

Will this affect the demand or supply curve?

Pizza is a substitute for Chinese food , so the price of pizza affects the demand curve

In what direction will the affected curve move?

The price of pizza, a substitute, DECREASES, so the demand for Chinese food DECREASES, or the demand curve shifts left.

SUPPLY CURVESUPPLY CURVESUPPLY CURVESUPPLY CURVE

MOVEMENT ALONG THE SUPPLY CURVE

MOVEMENT ALONG THE SUPPLY CURVE

MOVEMENT ALONG THE SUPPLY CURVE MOVEMENT ALONG THE SUPPLY CURVE FOR DISHES AT CHINESE RESTAURANTFOR DISHES AT CHINESE RESTAURANTMOVEMENT ALONG THE SUPPLY CURVE MOVEMENT ALONG THE SUPPLY CURVE FOR DISHES AT CHINESE RESTAURANTFOR DISHES AT CHINESE RESTAURANT

SHIFT OF THE SUPPLY CURVESHIFT OF THE SUPPLY CURVE

FACTORSFACTORSFACTORSFACTORS

• SKILLED CHEFS

• QUALITY MAINTAINENCE

• COST OF HOME DELIVERY

• SKILLED CHEFS

• QUALITY MAINTAINENCE

• COST OF HOME DELIVERY

SHIFT OF THE SUPPLY CURVE TOWARDS RIGHT SHIFT OF THE SUPPLY CURVE TOWARDS RIGHT

SHIFT OF THE SUPPLY CURVE TOWARDS RIGHT SHIFT OF THE SUPPLY CURVE TOWARDS RIGHT

Suppose that the Chinese food business becomes incredibly popular and profitable. What happens to the market?

The pizza business is an alternative to the Chinese food business, affecting the supply curve

In what direction will the affected curve move?

The profitability of Chinese food means that some pizza places will switch to Chinese food places, so the supply of pizza DECREASES, or the supply curve shifts right.

Suppose that the Chinese food business becomes incredibly popular and profitable. What happens to the market?

The pizza business is an alternative to the Chinese food business, affecting the supply curve

In what direction will the affected curve move?

The profitability of Chinese food means that some pizza places will switch to Chinese food places, so the supply of pizza DECREASES, or the supply curve shifts right.

SHIFT OF THE SUPPLY CURVE TOWARDS LEFTSHIFT OF THE SUPPLY CURVE TOWARDS LEFT

SHIFT OF THE SUPPLY CURVE TOWARDS LEFTSHIFT OF THE SUPPLY CURVE TOWARDS LEFT

Suppose that the pizza business is incredibly popular and profitable. What happens to the market for Chinese food?

Will this affect the demand or supply curve?

The Chinese food business is an alternative to the pizza business, affecting the supply curve

In what direction will the affected curve move?

The profitability of pizza means that some Chinese food places will switch to pizza places, so the supply of Chinese food DECREASES, or the supply curve shifts left.

Suppose that the pizza business is incredibly popular and profitable. What happens to the market for Chinese food?

Will this affect the demand or supply curve?

The Chinese food business is an alternative to the pizza business, affecting the supply curve

In what direction will the affected curve move?

The profitability of pizza means that some Chinese food places will switch to pizza places, so the supply of Chinese food DECREASES, or the supply curve shifts left.

MARKETMARKET EQUILIBRIUMEQUILIBRIUMMARKETMARKET EQUILIBRIUMEQUILIBRIUM

The supply and demand curves intersect at the point where

quantity supplied = quantity demanded.

This intersection is what we call an equilibrium price.

This is the price where the intentions of both the buyer and seller are compatible: Buyers want to buy the exact amount the sellers want to sell.

The supply and demand curves intersect at the point where

quantity supplied = quantity demanded.

This intersection is what we call an equilibrium price.

This is the price where the intentions of both the buyer and seller are compatible: Buyers want to buy the exact amount the sellers want to sell.

MARKET EQUILIBRIUM AT THE TIME OF EXCESS DEMANDMARKET EQUILIBRIUM AT THE TIME OF EXCESS DEMAND

Why is (1500, RS125-350) an equilibrium?

To understand why, let's think about what would happen if the price was greater than or less than RS125-350.

If the price is less than RS125-350, say RS75-250, the quantity demanded will be very high than the quantity supplied. The result would be a shortage of Chinese food. This shortage would force prices up, causing Chinese food suppliers to produce more and consumers to buy less, until the price reaches RS125-350.

Why is (1500, RS125-350) an equilibrium?

To understand why, let's think about what would happen if the price was greater than or less than RS125-350.

If the price is less than RS125-350, say RS75-250, the quantity demanded will be very high than the quantity supplied. The result would be a shortage of Chinese food. This shortage would force prices up, causing Chinese food suppliers to produce more and consumers to buy less, until the price reaches RS125-350.

MARKET EQUILIBRIUM AT THE TIME OF EXCESS SUPPLYMARKET EQUILIBRIUM AT THE TIME OF EXCESS SUPPLY

If the price is greater than RS75-250, say RS125-350, the quantity demanded will be lesser than the quantity supplied. The result would be a huge surplus produced, with no one willing to buy them for RS300-650. This surplus would force prices to fall, causing Chinese food supplies to cut back production and Chinese food buyers would be willing to buy more Chinese food as the price falls, until the price reaches RS125-350.

If the price is greater than RS75-250, say RS125-350, the quantity demanded will be lesser than the quantity supplied. The result would be a huge surplus produced, with no one willing to buy them for RS300-650. This surplus would force prices to fall, causing Chinese food supplies to cut back production and Chinese food buyers would be willing to buy more Chinese food as the price falls, until the price reaches RS125-350.

MARKET EQUILIBRIUM AT THE TIME OF EXCESS SUPPLYMARKET EQUILIBRIUM AT THE TIME OF EXCESS SUPPLY

CONCLUSIONCONCLUSIONCONCLUSIONCONCLUSION

So an equilibrium point is a point of rest, where there is no incentive for buyers or sellers to change their decisions. However, if one of the other factors affecting demand and supply change, then the demand and/or supply curves will shift, and a new equilibrium will result.

So an equilibrium point is a point of rest, where there is no incentive for buyers or sellers to change their decisions. However, if one of the other factors affecting demand and supply change, then the demand and/or supply curves will shift, and a new equilibrium will result.

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