Lecture 1: Demand and Supply of Love

Law of Demand
1. Output(quantity) demanded increase as a result but Price(value) of your love decreases. (inversely related)
2. When there is an increase in love demanded, the demand curve of love is shifted rightwards.

Law of supply
1. When the amount of love you supply increase, price increase(more costly).
2. When the market has more suppliers, people will tend to demand lesser from you, thus supply decreases- supply curve shifts leftwards.

Market Equilibrium
1. The love market will be at equilibrium at a point where supply of love meets demand of love (Slove=Dlove).
2. P0 and Q0 denotes the equilibrium amount of love you should supply and demand.
Factors and their effects
1. Environmental factors affects both the supply and demand which leads to either an increase or a fall in equilibrium price and quantity. (eg: time, increased market size, change in taste and preferences)



Need-to-knows
Opportunity costs: It is the cost of giving up something when you made a choice of doing another.