Factors that Shift Supply and Demand

Anotações:

•  increase or decrease in people wanting to but things in the market.

Anotações:

• what is in fashion at the time, fads, or stores stop selling things because of the change in season

Anotações:

• A rise or fall in income that causes consumers to buy either normal goods or inferior goods. Normal goods are any name brand good and inferior goods are any off-brand goods.

Anotações:

• what consumers think will happen to goods because of outside services

Anotações:

• Prices of substitutes and compliments cause changes in demand.  A substitute is a similar good to the product that is being produced.  It competes for more consumers with the product.  A compliment is something you buy along with the product.  They come hand-in-hand normally, like peanut butter and jelly.

Anotações:

• the amount of businesses that provide a product to the market

Anotações:

• includes everything from labor to resources to cost of shipping

Anotações:

• new inventions make production easier

Anotações:

• Taxes make supply decrease and subsidies make supply increase.  Taxes decrease supply because it costs the company more to produce the product.  Subsidies increase supply because the government gives money to the company in order to make cost of production less.

Anotações:

• sometimes it is cheaper to produce another product than it is to produce the one that you currently are producing

Anotações:

• what sellers think will happen in the market