Graphing changes to demand

Changes to demand are dependent on the number of units of goods (or services) that consumers are willing (and able) to take off the market at various alternative prices.  A change in demand occurs if and only if one of the "other things" (called non-price determinants of demand) changes.

For example because it's play-offs season the demand for their tickets rose dramatically and the change in demand for tickets (in Vancouver and Boson) was because both hockey teams were now the two last teams teams battling for the Stanley Cup and hockey fans were eager to cheer them on live and become a part of what could have been a memorable moment.   

This in turn cause a shift in demand for tickets in their city to the right. 

Game On

When operating a large company such as McDonald's there are many factors to consider that affect your ability to provide sufficient product and service to your consumer.  Many of us do no see the economics behind the decision making it takes to ensure goods and services meet our standards when we choose fast food products and services.

Unless a firm is responsive to the demand of the consumer, they will go out of business.  Decisions on pricing, quantity and service are directly related to consumer demand.  If you cannot satisfy your customer expectations your demand drops which then affects current price.  Other determinants that affect the demand for a products include consumer preference, income, price of related goods, expectation of future prices, incomes or availability and population.

Prices directly affect supply availability, if the price is low consumers tend to buy but it may cost the supplier more to produce, whereas if the price is high the suppliers are able to produce enough with spending too much.  Supply of products are affected by the determinants of supply which include price of resources, business taxes, technology, price of substitutes in production, future expectation of suppliers and supplies.

Production Possibility Curve

The production possibility curve is represented in it's many forms through graphs (Circular flow, Production Possiblity Curve I, Production Possibility Curve II and Production Possibility Curve III) as a demonstration of the different rates of production two goods and/or service that an economy can produce efficiently during a specific period of time (with a limited quantity of productive resources). The Production possibility curve shows the maximum amount of one commodity that can be obtained for any specific production level of the other commodity, given the societies technology and the amount of factors of production available.

Choices an individual has to make in life based on the scarcity and choice is deciding what to buy and what to give up to maximize our satisfaction. For example if you gave up attending NHL hockey games in exchange of watching it on TV, the cost of watching the game on TV is nothing.

One other significant opportunity cost is returning to school and giving up wages in return for knowledge to enhance my skills. The opporunity costs is gaining further knowledge in my field of work, the opportunity of becoming a manager and increased salary expectations in exchange for current possible earnings.