REFLECTION TIME :)

	K What I know	W What I want to know	L What I learned
Sabrina Ibrahim	Theory of demand : refers to the qty demanded of a good or service which consumers are willing and able to buy at different price levels over a specific period of time, ceteris paribus. Theory of supply: refers to the qty of a good or service which sellers are willing and able to offer for sale at different price levels during a specific period of time, ceteris paribus. Law of demand : inverse (-ve) r/s between price and qty demanded of a good or service during a specific period of time ceteris paribus.  (Substitution & income effect) Law of supply :  Direct (+ve) r/s between price and qty supplied for a good or service during a specific period of time ceteris paribus.  Factors affecting demand curve -  Change in quantity demanded : price of the good itself (movement along demand curve) Change in demand  : (Whole shift of demand curve) Price of related goods (complementary & substitute goods) Expectation of future price/income Taste and preference  Population size + purchasing power Income levels (normal & inferior goods) Government policies Factors affecting supply curve -  Change in quantity supplied : (Movement along supply curve) price of the good itself  Change in supply : (Whole shift of supply curve) Weather Expectations of future prices of good Technology Price of related goods (joint & competitive supply) Input prices  Government policies Sellers (no. of) Equilibrium refers to a situation whereby there is no tendency to change. Surplus :  Qty supplied > Qty demanded Shortage :  Qty demanded > Qty supplied	- Does surplus or shortage apply to real life for every time ? - Is there a situation where a shortage and surplus happen at the same time ?	- How to draw a correct surplus and shortage graph. - Input prices refers to the cost of production. - Technology is related to the input prices. - Government polices affects the cost of production. - The difference between between the government policies for the demand and supply. - The difference between between the price of related goods for the demand and supply.
Sabrina Talib	I know that demand is based on consumer point of view. For law of demand, there’s an inverse relationship between the price and quantity demanded of the good or service, during a specific period of time, ceteris paribus. When the price of the goods increase, the quantity demanded of the goods will decrease, vice-versa. Only changes in the price of the goods will cause a movement along the demand curve. When price increase, quantity will decrease and therefore, the movement of the curve will be upwards. Factors such as price of related goods, expected future income, taste and preference, population, income effect and government policies will cause a shift in the demand curve. These changes will either make the demand curve shift rightwards or leftwards.Supply is based on producers point of view. The law of supply states that there’s a positive relationship between the price and quantity supplied of the goods itself. When price of goods increase, quantity supplied will increase too. The only effect that will cause a movement along the supply curve is the price of goods. Effects that will cause a shift in the supply curve are weather, expectations of future price of the goods, technology, price of related goods, input prices and government policies.	I want to know other factors that will affect the shift in the demand and supply curve.	I learn that when there’s a shortage, price will go up as there’s not enough goods and services. From a consumers point of view, only those with high/more purchasing power are able to buy. Consumers will bid up the price and thus, the supply and demand curve will converge at a new equilibrium price and shortages will be removed when the new equilibrium point is achieved. On the other hand, when there’s a surplus, suppliers tend to reduce the price in order to sell their excess stocks. From a consumers point of view, when they realize the prices have dropped, they tend to purchase more. All forms of surplus will be remove at the new equilibrium point.
Qiian Siew	I know that demand refers to the quantity of a good or service that consumers are willing and able to purchase at a given price in a given time period. The law of demand states that there is an inverse relationship between the price and the quantity demanded of a good, ceteris paribus. A change in price of the good itself leads to a movement along the existing demand curve and a change in any of the other determinants of demand will always lead to a shift of the demand curve to either the left or the right. Supply is the willingness and ability of producers to produce a quantity of a good or service at a given price in a given time period. The law of supply states that as the price of a product rises, the quantity supplied of the product will usually increase, ceteris paribus. A change in the price of the good itself leads to a movement along the existing supply curve and a change in the determinants of supply will always lead to a shift of the supply curve to either the left or right. Equilibrium is a state of rest, self-perpetuating in the absence of any outside disturbance.	Are there greater advantages or disadvantages to how governments restore an economy back to equilibrium?	I have learnt that the increase in quantity demand is due to the income and substitution effect that are caused by the inverse relationship of the law of demand. When there is an increase in income, people will be more likely to buy more of the product. When the price of a product falls, the product will be relatively more attractive to people than other products whose prices have stayed unchanged, and so it is likely that consumers will purchase more of the product, substituting it for products that were previously purchased. I also have a better understanding of how the non-price determinants of demand can lead to an actual shift of the demand curve to the left or right. The law of supply occurs as at higher prices, there will be more potential profits to be made and so the producer will increase input. I have also learnt that supply curves are usually gets steeper when price rises. Whenever we look at a change in one of the determinants, we always make the ceteris paribus assumption to make sure that the analysis will not become too complicated and impossible to identify the effect of a change in any one of the determinants. Whenever there is a shift in the demand or supply curve, the market will, if left to act alone, adjust to a new equilibrium, market-clearing price. Price mechanism helps to allocate scarce resources. Resources are allocated, and re-allocated, in response to changes in price.  Surplus is the extra satisfaction gained by consumers from paying a price that is lower than that which they are prepared to pay.
Jing Yi	Definition of Demand: Demand refers to the quantities of a good or service that consumers are willing and able to buy at different prices over a period of time keeping other factors constant. Law of demand states that there is an inverse relationship between the price and the quantity demanded of a good, ceteris paribus. where this inverse relationship is caused by the substitution effect and the income effect. There are normal goods and inferior goods. For example, normal goods are goods where demand increases when income level rises and vice versa. This causes the demand curve to shift to the right. Whereas for inferior goods are goods for which the demand falls when income rises. This causes the demand curve to shift to the left. Under Price of related goods, there are substitutes for goods which might results the demand curve to shift due to this substitutes for a particular good. There are strong and weak substitutes. There are also complements where a complement is a good that is used in conjunction with another good. An example would be tennis racket and tennis balls. This would also result the demand to shift. Definition of supply: Supply of a product refers to the quantities of a good or service which sellers are willing and able to offer for sale at different price levels, over a specific period, ceteris paribus. Law of supply states that there is a direct(positive) relationship between the price and the quantity supplied of the good or service, during a specific period of time, ceteris paribus. where this direct relationship is due to increasing marginal cost as the output levels increases.	what real life examples are there to explain these concepts ?	A change in quantity demanded is represented by a movement along the demand curve which is only caused by one factor which is the price of the goods. A change in demand is represented by a shift of the entire demand curve which is cause by other demand factors such as population size (PETPIG) other than the price of goods. Inferior goods can be subjective depending on level of income. The main non-price determinants of demand: P- Price of Related Goods. E- Expected future Prices/Income T- Tastes and Preferences P - Population Size I - Income Levels G - Government Policies The main non-price determinants of supply: W - Weather E - Expectations of the future price of the good T - Technology P - Price of Related Goods, that is goods in joint supply and competitive supply. I - Input prices (Cost of production) G - Government Policies S - Number of sellers. Joint supply occurs when the production of one good also entails the production of another. An example would be beef and leather. Competitive supply occurs when the production of one good deters the production of another. an example is wheat and corn. A change in quantity supplied is represented by a movement along the supply curve which is only caused by one factor which is the price of the goods. A change in supply is represented by a shift of the entire supply curve which is cause by other supply factors such as technology (WETPIGS) other than the price of goods. I have learn how to identify a shortage or surplus from the supply and demand curve and how surplus and shortage will result in a new equilibrium point and thus overcoming the shortage or surplus.
Yu Hui	I know that demand refers to the quantity that consumers are willing to buy and that supply refers to the amount that sellers are willing to offer.		I understood the theory of demand, law of demand and theory of supply and law of supply. How to draw the supply and demand curve with the shortage or surchage Factors causing a shift in the demand and supply curve I've understood which changes will cause the demand and supply curve to shift to the left, right, or along the curve itself. Non-price determinants like expectations of future income or price of the good, government policies, in come, price of related goods, tastes and preferences, and population changes are determinants of demands that can lead to a leftward or rightward shift in the demand curve while the weather , expectations of future price of good, technology, price of related goods, input prices, government policies and number of sellers are the non-price determinants of supply.