CLIL MATHS

Clil project a.s. 2023/2024 Graduation exam

ECONOMIC FUNCTION: demand and supply

Alice Corno Class 5CRIM Ite Montale Tradate

Elasticity of the demand

index

Supply and demand

Point of balance

Function

The change of function

Other economic function

If the price increases, the supply increases

SUPPLY

It's the quantity of goods and services placed on the market by all producers.

DEMAND

It's the amount of economic goods or services required at a given price by all consumers

If the price increases, the demand drops

POINT OF BALANCE:

Balance is the point in which price makes supply and demand the same. We study the meeting between quantity asked and offered in a perfectly competitive market, that is hypotetical, where competition is at it's greatest possible level. Characteristics of a perfectly competitive market are:

1. Splitting of supply and demand2. Free entrance in the market 3. Market trasparicy 4. Homogenity of products and services

ELASTICITY OF THE DEMAND:

The elasticity of the demand is the variation of the demand if there is a variation of price.

INELASTIC DEMAND: It's a demand not very responsive to price

We can find three possibility:

ANELASTIC DEMAND: It's a demand perfectly responsive to price

ELASTIC DEMAND: It's a demand very responsive to price

FUNCTION:

Graph of Kinder's advent caldendars before the change

THE CHANGE OF FUNCTION:

Graph of Kinder's advent calendars after the change.This advent calendar is bought by thousands of Italian families during the Christmas period. However, this year the production costs more so the company is forced to increase the selling price even though the product is the same.

1. TOTAL COST: Variable cost (Cv) + Fixed cost (Cf)

4. REVENUES: Price multiplied by quantity produced and sold

2. MARGINAL COST: Costs to produce due more unit of goods/services

5. PROFIT: Revenues - Total costs

3. UNIT COST: Costs to produce one unit of goods/services

Thank you so much for the attention...BYE BYE!!