supply curve - relationship between how much producers willing to sell and price 

• price (x) vs quantity (y) graph, axes can be reversed
• what price necessary to get designated quantity? what quantity necessary to get designated price?
• higher price >> firm able/willing to produce more >> slopes upward
• variables affecting supply curves - labor, capital, raw materials
  • lower cost of production >> higher profits >> expand output
  • supply curve shifts as variables change
  • shift not caused by change in price (already part of calculated curve)
  • price only changes mov’t up and down the existing curve

demand curve - relationship between how much consumers willing to buy and price  

• price decreases >> consumers more willing to buy >> slopes downward
• variables affecting demand curves - income, consumer tastes, price of related/similar goods
  • more income >> more willing to buy
  • substitutes (knock-offs) - increasing price of one >> increasing consumption of other
  • complements - used together >> increasing price of one >> decreasing consumption of other
• demand curve shifts as w/ supply curve
  • income increases >> more quantity bought overall (regardless of price)
  • competition lowers prices >> cheaper substitutes >> shifts inward >> less bought

• demand curve
• supply curve
• equilibrium point
• all changes made to move towards equilibrium point
• move towards equilibrium point >> move along curve

• changes in demand curve
• increased income
• substitutes got more expensive
• complements come free or at reduced price
• decreased income
• substitutes got cheaper
• complements got more expensive

• changes in supply curve
• cost of production (labor/materials/tariffs) increase
• cost of production decrea