Types of Demand And Supply (With Curves) - SS2 Economics Lesson Note

Price Demand: Price demand refers to the amount of a product or service that consumers are willing to buy at different prices. It is shown graphically by the demand curve, which is a downward-sloping curve that represents the inverse relationship between price and quantity demanded. As the price of a product increases, the quantity demanded decreases and vice versa. Examples of products with price demand include gasoline, coffee, and movie tickets.

Income Demand: Income demand refers to the effect that changes in consumers' income have on their demand for a product or service. It is shown graphically by the income demand curve, which is a positively sloping curve that represents the direct relationship between income and quantity demanded. As consumers' income increases, they demand more of a product and vice versa. Examples of products with income demand include luxury goods such as sports cars, high-end jewellery, and designer clothing.

Cross Demand: Cross demand refers to the effect that changes in the price of one product have on the demand for another related product. It is shown graphically by the cross-demand curve, which is a curve that represents the relationship between the price of one product and the quantity demanded of another product. If two products are substitutes, an increase in the price of one product will lead to an increase in the demand for the other product. Examples of products with cross-demand include Pepsi and Coca-Cola, Sony and Samsung, and Honda and Toyota.

Seasonal Demand: Seasonal demand refers to the effect that changes in the seasons or weather have on the demand for a product or service. It is shown graphically by the seasonal demand curve, which is a curve that represents the relationship between the time of year and the quantity demanded of a product or service. For example, demand for air conditioners and ice cream is high during the summer, while demand for winter jackets and hot cocoa is high during the winter.

Price Supply: Price supply refers to the quantity of a product that suppliers are willing to produce and sell at different prices. It is represented graphically by the supply curve, which is an upward-sloping curve that represents the positive relationship between the price of a product and the quantity supplied. As the price of a product increases, the quantity supplied also increases and vice versa. Examples of products with price supply include smartphones, automobiles, and apparel.

Technological Supply: Technological supply refers to the level of production that suppliers are capable of producing using existing technology. It is represented graphically by the technological supply curve, which is a vertical line that represents the maximum amount of a product that suppliers can produce with current technology. Examples of products with technological supply include certain types of software, electronic components, and medical devices.

Resource Supply: Resource supply refers to the amount of resources, such as labour, raw materials, and energy, that are available to produce a product. It is represented graphically by the resource supply curve, which is a curve that represents the relationship between the quantity of resources used in production and the quantity supplied. Examples of products with resource supply include food, clothing, and construction materials.

Seasonal Supply: Seasonal supply refers to the level of production that suppliers can provide in response to changes in seasonal or weather-related factors. It is represented graphically by the seasonal supply curve, which is a curve that represents the relationship between the time of year and the quantity supplied. For example, the supply of fruits and vegetables is high during the summer, while the supply of winter clothing is high during the winter.

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