Powerpoint Demand and supply

Unit 5 Unit 5 Demand and supply Unit 5 demand and supply 1 Demand 2 Supply 3 Equilibrium VOCABULARY Demand cầu a need for goods or services that customers want to buy or use increasingrisinggrowing.

Unit 5 :

Demand and supply

• Quantity demanded: lượng cầu

• Price of a good: giá của một hàng hóa

• Curve: đường cong

• Shift factors: yếu tố phi giá (shifters), non-price factors,

• Movement: sự di chuyển

• Shift (v) + (n) dịch chuyển, sự dịch chuyển

Demand (v)

Demand sth/ demand to do sth- cần cái gì/ cần làm gì

• The library demanded $5 for each book returned late.

• [ + to infinitive ] I demand to see the person in charge.

Quantity (n) the amount or number of something, especially that can be measured:

• Police found a large/small quantity of drugs in his possession.

• We consumed vast quantities of food and drink that night.

• The (sheer) quantity (= large amount) of equipment needed for the trip is

staggering.

• They are now developing ways to produce the vaccine in large quantities and cheaply.

Supply (v) to provide materials, or goods and services:

• supply sth to sb/sth

They supply parts to the automotive industry.

Electrical power is supplied by underground cables.

We supply systems for clients on the Pacific rim

• supply sb/sth with sth

• All employees are supplied with safety equipment.

• They were not able to supply us with the relevant data.

Specific (adj) relating to one particular thing and not others:

• A specific provision in the agreement stated that research materials should not

be used for commercial purposes.

• quantity of sth A sudden surge in the quantity of stock available would almost certainly depress the price.

• huge/large/vast quantity Asian central banks have been buying huge quantities

of Treasury bonds.

• in large/small quantities Supermarkets, being able to buy in large quantities, can offer their customers the best prices.

Supply (v) to provide materials, or goods and services:

supply sth to sb/sth – cung cấp cái gì cho ai

• They supply parts to the automotive industry.

• Electrical power is supplied by underground cables.

• We supply systems for clients on the Pacific rim.

supply sb/sth with sth 

• All employees are supplied with safety equipment.

• They were not able to supply us with the relevant data.

Shift (v) to move something to a different place or position: dịch chuyển

shift sth to sth – chuyển đổi cái gì sang cái gì

• They shifted the money to another account.

shift sth out of sth

• Rising costs forced them to shift manufacturing work out of Europe.

• exert/have/exercise (an) influence He is close enough to the President to exert influence.

• (an) influence on sth Bloggers are expanding their influence on American politics.

• (an) influence over sth Consumer groups act as champions and have critical

influence over industry.

• Be able to do sth: có thể làm gì

• Be willing to do sth: muốn làm gì = want to do sth

• Buy (v) mua – to buy sth = purchase

• Buyer: người mua

• Possible prices: các mức giá có thể

• A particular price: một mức giá cụ thể

• Be able to buy = have enough money to buy

• Be willing to buy = want to buy

Purchase (n) something that you buy:- hàng hóa được mua

• How do you wish to pay for your purchases?

a big/major purchase

• A car is a major purchase.

Purchase (n) the act of buying something:

• No purchase is necessary for you to enter this competition.

• If you wish to make a purchase , we will require your credit card details.

• Tax on the purchase of medical equipment can be reclaimed.

• This product may be frozen If required, freeze on day of purchase.

• Similar products are available for purchase in the gift shop.

• house/ticket/share purchase

Purchase (n) something that you buy:

• How do you wish to pay for your purchases?

• a big/major purchase A car is a major purchase.

Questions

1 What is demand?

2 What is quantity demanded?

3 When other things are equal/ are kept constant, what will happen to demand of a good if its prices increase?

4 What is supply?

5 What is quantity supplied?

6 When other things are equal, what will happen to supply of a good if its prices increase?

7 What are shift factors of demand? Give examples.

8 What are shift factors of supply? Give examples.

9 What will happen to demand of a good if one of the shift factors increases or

decreases?/

How do shift factors influence/ affect demand of a good?

10 What will happen to supply of a good if one of the shift factors increases or

decreases?

Definition:

- “Demand” refers to all possible quantities

of a good or a service that the buyers are able

and willing to buy at all possible prices

- “Quantity demanded” refers to a particular

quantity of a good that the buyers are able

and willing to buy at a particular price

1 Demand

• Cầu diễn tả tất cả lượng hàng hóa có

• “Quantity demanded” refers to a

particular quantity of a good that

the buyers are able and willing to

buy at a particular price

• Lượng cầu diễn tả một lượng hàng hóa cụ thể mà người mua có thể và muốn mua ở một mức giá cụ thể

1 What does the clause “the buyers are able to buy” mean?

 It means that the buyers have enough money to buy

2 What does the clause “the buyers are willing to buy” mean?

 It means that the buyers want to buy

Decisions (Choices) of consumers depend on their resources and their preferences Demand curve is limited

The influence of price of a good on its demand

• when other things are kept constant, if price of a good

decreases, it’s quantity demanded will increase and

vice versa Or price and quantity demanded of a good

are inversely/ negatively related.

• A price change of a good/ a change in price of a good

causes a movement along a given demand curve

1 Demand

• when other things are kept constant, if

price of a good decreases, it’s quantity

demanded will increase and vice versa

• Or price and quantity demanded of a

good are inversely/ negatively related.

• Khi các yếu tố khác được giữ nguyên, nếu giá của một hàng hóa nào đó giảm, thì lượng cầu của nó sẽ tăng và ngược lại

• hoặc giá và lượng cầu của một hàng hóa quan hệ tỷ lệ nghịch

The influence of shift factors on demand of a good:

curve shift to the left or to the right

- Shift factors can be: tastes ( thị hiếu), society’s income, prices of

substitutes, expectations (kỳ vọng ), advertising campaign , etc

- Tend to do sth (v) – có xu hướng làm gì

- When income increases, individuals and firms tend to spend

more Then the whole demand curve will shift to the right.

The company’s successful advertising campaign can cause the demand

curve to shift to the right.

1 Demand

The influence of shift factors on demand of a good:

- A change in one of shift factors causes the

whole demand curve shift to the left or to the

right

- Shift factors can be: tastes (thị hiếu), society’s

income, prices of other goods, expectations (kỳ

vọng), advertising campaign, etc

- Tend to do sth (v): có xu hướng làm gì

- When income increases, individuals and firms

tend to spend more Then the whole demand

curve will shift to the right.

Sự tác động của yếu tố ngoài giá đối với cầu của hàng hóa:

- Sự thay đổi của một trong những yếu tố ngoài giá làm cho cả đường cầu dịch chuyển sang trái hoặc sang phải

- Khi thu nhập tăng, các cá nhân và doanh nghiệp có xu hướng chi tiêu nhiều hơn Khi đó cả đường cầu sẽ dịch sang bên phải

Shift factor of demand

- “Supply” refers to all possible quantities

of a good or a service that the sellers are

able and willing to sell at all possible prices

- “Quantity supplied” refers to a particular

quantity of a good that the sellers are able

and willing to sell at a particular price

2 Supply

• “Supply” refers to all possible

quantities of a good or a service

that the sellers are able and willing

to sell at all possible prices • Cung là chỉ tất cả lượng có thể của

một hàng hóa hay dịch vụ nào đó

mà người bán có thể và muốn bán ở tất cả những mức giá có thể

“Quantity supplied” refers to a

particular quantity of a good that the

sellers are able and willing to sell at a

particular price

Lượng cung diễn tả một lượng cụ thể của hàng hóa nào đó mà người bán có thể và muốn bán ở một mức giá cụ thể

The influence of price of a good on its supply:

• when other things are kept constant, if price of a good

increases its quantity supplied will increase Or price

and quantity supplied of a good are positively related

• A price change causes a movement along a given supply

curve

2 Supply

• when other things are kept constant, if

price of a good increases its quantity

supplied will increase Or price and

quantity supplied of a good are positively

related

• A price change causes a movement along

a given supply curve • Khi các yếu tố khác không đổi, nếu giá của

hàng hóa nào đó tăng, thì lượng cung của

nó sẽ tăng Hoặc giá và lượng cung của hàng hóa quan hệ tỷ lệ thuận

• Sự thay đổi của giá tạo ra sự di chuyển trên cùng một đường cung

What will happen to demand of a

good if one of the shift factors

increases or decreases?/

How do shift factors influence/

affect demand of a good?

• The whole demand curve will shift to the right or to the left

• If one of the shift factors increases or decreases, the whole demand curve will shift to the right or to the left

• What will happen to demand of a good if

national incomes increase?

• if national incomes increase, the demand curve will shift to the right

Changes in prices of inputs Supplier’s expectation

shift factors of supply

2 Supply

Technology taxes

shift factors of supply

2 Supply

the influence of shift factors on sellers

(supply) :

A change in one of shift factors causes the

whole supply curve shift to the left or to the

right.

• The technological development helps firms to produce goods in large quantities, so the aggregate supply will increase Then the supply curve will shift to the right (Phát triển công nghệ giúp doanh nghiệp sản xuất hàng hóa với số lượng lớn, do vậy tổng cung sẽ tăng Khi đó đường cung sẽ dịch sang bên phải)

• When the governments imposes more tax on a particular good, the supply of that good can decrease

(Khi chính phủ đánh thêm thuế vào mặt hàng cụ thể nào đó, thì cung của hàng hóa đó

sẽ giảm.)

Equilibrium point is the point at which the supply curve and demand curve meet each other (intersect)

3 Equilibrium

• The influence of demand on prices:

When demand of a good increases, its price

will increase

(Khi cầu của hàng hóa tăng, thì giá của nó sẽ

tăng.)

When supply of a good increases, its price will decrease

(Khi cung của hàng hóa tăng, thì giá của nó sẽ giảm.)