i e i ECON 519 aSUPPLY AND DEMAND HISTORY » The power of supply and demand was understood to some extent by several early Muslim economists who said: v "If desire for goods increases while its availability decreases, its price rises. On the other hand, if availability of the good increases and the desire for it decreases, the price comes down." a lSuppy and Demand » Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship.SUPPLY AND DEMAND » Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand. aThe Law of Demand » The law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good. » The amount of a good that buyers purchase at a higher price is less because as the price of a good goes up, so does the opportunity cost of buying that good. aThe Law of Supply » Like the law of demand, the law of supply demonstrates the quantities that will be sold at a certain price. But unlike the law of demand, the supply relationship shows an upward slope. This means that the higher the price, the higher the quantity supplied. Producers supply more at a higher price because selling a higher quantity at a higher price increases revenue.Equilibrium » When supply and demand are equal (i.e. when the supply function and demand function intersect) the economy is said to be at equilibrium. At this point, the allocation of goods is at its most efficient because the amount of goods being supplied is exactly the same as the amount of goods being demandedCURVA DE LA DEMANDA nigyea Price 10 Demand Curve 3: — As the price of a good © Increases from 3 to & the demand decreases from 93 to 27. 30 20 30 40 50 66 7 80 90 100 Quantity DemandedFUNCION DE LA DEMANDA Cantidad de f (precio del prod x, precios de bienes un producto = OX = substitutos, cambios X demandado de precio esperados, s ingreso del ai consumidor, gusto, etc.) Q= a1P + a2Pl + a31+ a4 Pop + a5i+a6ACURVA DE LA OFERTA 20 30 40 50 60 Quantity Supplied NeimBA.com 10 0FUNCION DE LA OFERTA Cantidad de { (precio de x, precio de bienes un producto =Qe= substitutos, estado X oferta. YS actual de tecnologia, Os clima, etc) Q= b1P + b2Psuv + b3W + b4S + b5S + b6iDEMANDA Y SUMINISTRO P: Precio Q: Cantidad S: Suministro D: DemandaPUNTO DE EQUILIBRIO Supply and Demand 6 Demand Supply 5 4 ws Ys 3 - Pr socom E— Equilibrium Shortage 0 lo 20 6 30Q%40 50 60 P QUANTITYShift in the Demand Curve » Achange in any variable other than price that influences quantity demanded produces a shift in the demand curve or a change in demand. » Factors that shift the demand curve include: » Change in consumer incomes » Population change > Consumer preferences > Prices of related goods:Shift in the Demand Curve Shift in the Demand Curve 30 40 This demand curve has shifted to the right. Quantity demanded is now higher at any given price.Shift in the Supply Curve » Achange in any variable other than price that influences quantity supplied produces a sh/ft in the supply curve or a change in supply. » Factors that shift the supply curve include: ° Change in input costs Increase in technology » Change in size of the industry aShift in the Supply Curve Shift of The Supply Curve P, ©oniineTexts.com For an given rental price, quantity supplied is now lower than before.Equilibrium After a Supply Shift Equilibrium after a Supply Curve Shift ©nlineTexts.com The shift in the supply curve moves the market equilibrium from point A to point B, resulting ina higher price and lower quantity.SUMINISTRO Y DEMANDA MUNDIAL DE PETROLEO Conjeturas sobre el suministro mundial de petrdleo y gas varian en funcion de la fuente. La gran mayoria de los pronosticos calculan que existen suficientes reservas de petrdleo para satisfacer la demanda durante los proximos 20 a 25 afios.AUMENTO EN LA DEMANDA » Desde 1981, se ha consumido en el mundo mas petroleo del que se ha descubierto. Actual 4x1. » Necesario aplicar un proceso mas integral y complejo para encontrar perforaciones y maximizar rendimiento del suministro. f+ Ante la inestabilidad de [as relaciones politicas entre los Estados Unidos y paises como Irak, Arabia Saudita, Iran, Venezuela y Rusia es fundamental que Estados Unidos no dependa tanto de la demanda del petrdleo extranjero. . Se espera que la demanda mundial de petrdleo aumente un 54 por ciento hasta el 2025 aumentando déficit del suministro. * Gran parte del crecimiento de la demanda, el 40 por ciento, provendra de Asia (china e India). Se espera que su 25. necesidad diaria de petrdleo se duplique GY ~~ a Was tee-raneChina superara la demanda de los Estados Unidos como el mayor consumidor mundial de petrdleo. En 2004, China superé a Japé6n como el segundo mayor consumidor mundial de petrdleo, con un promedio de 6,63 millones de barriles al dia. » Se espera que la demanda de petréleo de China siga aumentando a razon de en un cinco a siete por ciento anual contribuyendo a la baja de suministro.SUMINISTRO Y DEMANDA DE PETROLEO A NIVEL MUNDIAL. Et Derierr pet Perroneo 4 Nive. Munpiat Puepe Crecer 140 120 Demanda Futura 100 Dibicit 80 60 40 Produccidn ! Demanda Real Suministra Futuro 20 2005 2010 2015 2030 9095 Suministro futuro: Fh para 6! Estudio del ico ce) PerleDemanda y Suministro » La Agencia Internacional de la Energia, prevé un nivel maximo de producci6n y suministro mundial entre 2013 y 2037 y luego escases. Sin embargo; » El Centro de Analisis del Agotamiento del Petrdleo publicé recientemente un estudio que pronosticaba una drastica reduccion del suministro durante el curso de los proximo afios. aConclusion » Este significativo aumento de la demanda_ no puede darse sin que provoque graves consecuencias en el suministro. » No creemos que la demanda vaya a disminuir de forma drastica, pensamos que a medida que la demanda siga superando el suministro, y dado que la demanda del producto es inelastica, los precios del petrdleo y el gas en el mercado sufriran un aumento de corto a largo plazo. aREFERENCIAS Suministro y Demanda Mundial, Retrieved on October 27,2009 from; http://ieneurope.com/esp/oil-and-gas-investing.php Powerpoint Presentation -- Supply and Demand ,Retrieved on October 27,2009 from http:/;www.econweb.com/MacroWelcome/sandd/ppt/index.ht