Assessment

File Name

Pinyin name (English name)-1ENO20-AT1-T2P1.docx

You should DEFINITELY have

1. A list of stakeholders in your market
2. A list of events that have happened in your market

You should be working on

a paragraph about how the stakeholders were affected for each event.

Review:

Vocabulary:

• Qs>Qd = surplus
• Qs<Qd = shortage

The point where supply and demand cross is called equilibrium. If the market is not at equilibrium because of a shift in demand (HISAGE) or a shift in supply (STORES), the word is disequilibrium.

HISAGE

• Habits, fashion, tastes
• Income *
• Substitutes and complements **
• Advertisement
• Government policy
• Economy

Income *

Higher income

Demand for normal goods shifts right. Demand for inferior goods shifts left.

Lower income

Demand for normal goods shifts left. Demand for inferior goods shifts right.

Substitutes and Complements **

Substitutes

Expensive substitutes shift demand right and cheap substitutes shift demand left

Complements

Expensive complements shift demand left and cheap complements shift demand right

STORES

• Subsidies and taxes
• Technology
• Other related goods***
• Resource cost
• Expectations
• Size of market

Other related goods ***

This just means substitutes and complements. I use ‘O’ because it spells STORES, and stores are suppliers. Substitutes and complements are “other related goods.”