Factors that Shift Demand Supply. Variables that influence buyers 1 2 VariableA Change in This...
-
Upload
evelyn-hoover -
Category
Documents
-
view
216 -
download
0
description
Transcript of Factors that Shift Demand Supply. Variables that influence buyers 1 2 VariableA Change in This...
Factors that ShiftDemand & Supply
Variables that influence buyers1
2
Variable A Change in This Variable . . .
Price of the good itself Income Prices of related goodsTastes Expectations Number of buyers
Represents a movement along the demand curve
Shifts the demand curveShifts the demand curveShifts the demand curveShifts the demand curveShifts the demand curve
This table lists the variables that affect how much consumerschoose to buy of any good. Notice the special role that the priceof the good plays: A change in the good’s price represents amovement along the demand curve, whereas a change in one ofthe other variables shifts the demand curve.
Table 4.1 Factors That Shift the Demand
Curve
Variables that influence sellers2
4
Variable A Change in This Variable . . .
Price of the good itself Input prices Technology Expectations Number of sellers
Represents a movement along the supply curve
Shifts the supply curveShifts the supply curveShifts the supply curveShifts the supply curve
This table lists the variables that affect how much producers choose to sell of any good. Notice the special role that the price of the good plays: A change in the good’s price represents a movement along the supply curve, whereas a change in one of the other variables shifts the supply curve
Table 4.2 Factors That Shift the Supply Curve