Refresh demand curve and supply curve

• Economie
• Middelbare school
• vmbo lwoo, vwo
• Leerjaar 3

Refresh demand curve and supply curve

Change in demand

A price change 

A price increase leads to a movement along 

the demand curve

The price increases from € 25 to € 26.50

The demand decreases as a result from

400,000 to 340,000 tickets

Demand for tickets amusement park

Shift of the demand curve for Fifa 23

Shift to the right. More demand at each price. What happened there??

Shift to the right --> causes

1. Income of customers increases
2. Number of customers increases
3. The consumers taste changes in favour of this game

Shift to the right --> causes

Price of substituteproduct has increased

€ 

Shift to the right --> causes

Price of complementary has decreased

€ 

Shift to the left

At each price less demand

Decrease in income

Decrease in number of customers

Decrease in preference

Decrease in price of substitute goods

Increase in price of complementary goods

Shift of demand for gasoline to the right

Shift of demand for gasoline to the left

Income has increased

Income has decreased

Due to the increased number of people working from home, less cars are being driven.

Increase in the price of cars

Total profit

Turnover - total costs = total profit

Turnover = 50.000 X € 2                                                          € 100,000

Variable costs 50.000 X € 0.50 = € 25.000

Fixed costs                                            € 40.000 +

Total costs                                                                                    €    65,000 -

Total profit                                                                                    €    35,000

Bakery Cornflower bakes and sells 400 loaves of bread daily at a sales price of € 2 per loaf. The variable costs are € 0.22 per loaf. The fixed costs are € 140 per day.
Calculate the bakers turnover and total profit per day

Bakery Cornflower bakes and sells 400 loaves of bread daily at a sales price of € 2 per loaf. The variable costs are € 0.22 per loaf. The fixed costs are € 140 per day.
Calculate the fixed costs per loaf of bread

Fixed costs per product

Total fixed costs/ number of products

€ 140/ 400 loaves of bread = € 0.35

Bakery Cornflower bakes and sells 400 loaves of bread daily at a sales price of € 2 per loaf. The variable costs are € 0.22 per loaf. The fixed costs are € 140 per day.
Calculate the cost price of a loaf of bread

Cost price

Variable costs per product + fixed costs per product

€ 0.22 + € 0.35 = € 0.57

Bakery Cornflower bakes and sells 400 loaves of bread daily at a sales price of € 2 per loaf. The variable costs are € 0.22 per loaf. The fixed costs are € 140 per day.
Explain why the cost price decreases when the bakery bakes more bread per day

Why does cost price decrease

The variable costs stay at € 0.22, but the fixed costs per product decrease if he starts to bake more bread.

The fixed costs are divided by a larger number

6 d - f

7

Supply curve

Read 'theory The supply of goods'

A curve that shows all combinations of price and quantity supplied of a certain product

Change in supply

As the price goes up more tomatoes are supplied

Shift of the supply curve

Causes of the shift to the right

• Costs have decreased
• Innovation
• Subsidy

Supply curve

Siltcon produces solar powerbanks

This is their supply equation

Qs = 2 P - 100

P = price of a powerbank

Qs = number of supplied powerbanks X 1,000

Supply curve

Qs = 2 P - 100

P = price of a powerbank

Qs = number of supplied powerbanks X 1,000

1) How many powerbanks are supplied at a price of € 80?

2) How many powerbanks are supplied at a price of € 100?

3) What is the minimumprice?                          (hint: Qs = 0)

Supply curve

Qs = 2 P - 100                                         P = price of a powerbank

                                                                    Qs = number of supplied powerbanks X 1,000

1) How many powerbanks are supplied at a price of € 80?

P = 80 --> Qs = 2 X 80 - 100 = 60 --> 60,000

2) How many powerbanks are supplied at a price of € 100?

P = 100 --> Qs = 2 X 100 - 100 = 100 --> 100,000

3) What is the minimumprice?                          (hint: Qs = 0)

Q = 0 --> 2 P - 100 = 0

                       P = 50

Minimum sales quantity

Price of a wrap is € 5

TC = total costs

TC = 2 Q + 6,000

What is the minimum sales quantity?

€ 6,000/ (5 - 2) = 2,000 wraps

Total costs/ (price - variable costs per product)

What is the minimum sales quantity

The price of a hamburger € 6

Total fixed costs € 10,000

Variable costs per hamburger € 2

What is the minimum sales quantity

The price of a hamburger € 6

Total fixed costs € 10,000

Variable costs per hamburger € 2

€ 10,000/ (6 - 2) = 2,500 hamburgers

Discuss test chapter 1