C:\Users\Rob\Desktop\Ap Microeconomics Visuals Unit2
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AP Microeconomics Visual Visual 2.2National Council on Economic Education http://apeconomics.ncee.net
Determinants of Demand
FACTORS THAT SHIFT THE DEMAND CURVE
• Change in consumer tastes
• Change in the number of buyers
• Change in consumer incomes
• Change in the prices of complementary
and substitute goods
• Change in consumer expectations
AP Microeconomics Visual 2.10National Council on Economic Education http://apeconomics.ncee.net
Tax Incidence and Elasticity of Demand
The more inelastic the
demand for a good, the
more the incidence of an
excise tax can be shifted
to the consumer.
AP Microeconomics Visual 2.11National Council on Economic Education http://apeconomics.ncee.net
A Price Ceiling
AP Microeconomics Visual 2.12National Council on Economic Education http://apeconomics.ncee.net
A Price Floor
AP Microeconomics Visual Visual 2.3National Council on Economic Education http://apeconomics.ncee.net
Changes in Supply and Quantity Supplied
AP Microeconomics Visual Visual 2.4National Council on Economic Education http://apeconomics.ncee.net
Determinants of Supply
FACTORS THAT SHIFT THE SUPPLY CURVE
• Change in resource prices or input prices
• Change in technology
• Change in taxes and subsidies
• Change in the prices of other goods
• Change in producer expectations
• Change in the number of suppliers
• Any factor that increases the cost of production decreases supply.
• Any factor that decreases the cost of production
increases supply.
AP Microeconomics Visual Visual 2.5National Council on Economic Education http://apeconomics.ncee.net
Equilibrium
AP Microeconomics Visual Visual 2.6National Council on Economic Education http://apeconomics.ncee.net
Shifts in Demand and Supply
AP Microeconomics Visual Visual 2.7National Council on Economic Education http://apeconomics.ncee.net
Qualities That Affect Elasticity of Demand
AP Microeconomics Visual Visual 2.8National Council on Economic Education http://apeconomics.ncee.net
Elasticity Coefficients
AP Microeconomics Visual Visual 2.9National Council on Economic Education http://apeconomics.ncee.net
Summarizing Price Elasticity of Demand
AP Microeconomics Visual National Council on Economic Education http://apeconomics.ncee.net
Tax Incidence and Elasticity of Demand