The consumer has the ability to pay for the product
The difference between the price received by firms for a good or service and the price at which they would have been prepared to supply the good or service.
→ Demand shifts left
→ Lower Price
→ Lower Quantity
An increase in price
0
1 to ∞
The demand that an individual will have for goods and services at any given price.
The difference between what a consumer is willing to pay for a product and the price they actually pay.
Supply is the quantity of a good or service that producers are willing and able to supply onto the market at any given price in a given time period.
-Income
-Price of Complements
-Price of Substitutes
-Tastes and Fashion
