Determinants of Supply and Demand August 26, 2008Posted by petrarcanomics in Markets: Supply & Demand, Videos.
The following determinants cause shifts in the entire 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
The following determinants cause shifts in the entire supply curve:
- change in 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.
The following videos explain this concept further: