Factors that shift supply and demand
Expectations
A belief that something is likely to happen.
Change in consumer tastes
A change what consumers want to buy.
Change in the price of a complementary good
A good that can be compared to another good related to the same topic.
How might government regulations shift the supply curve?
If there are more government regulations made in a factory then the price of production would go up causing the supply curve to shift left.
Taxes
If there is an extra fee made on products the supply curve will shift to the left.
Give an example where work productivity would shift the supply curve.
If work productivity improves due to a technology investment then the cost of production will decrease, and the supply curve will shift to the right.
Name an example where there might be a change in consumer tastes?
In 2014 a new barbie doll was considered the "must have" Christmas toy, causing the company that produces the barbie dolls to see a huge spike in sales and demand. The following year, though, the new Bratz doll that is released is the new trendy toy for little girls. Changes in consumer tastes and trends affects how high demand will be for a product, causing the curve to shift in either direction.
When might the change in the price of a complementary good shift the supply curve? Give an example.
In the agricultural industry fertilizer and plant seeds are complementary to each other. If the price of one decreases then the demand for it will decrease causing the demand curve go down.
Why might there be a change in consumer expectations? Give an example.
In the mid 2000's when flip phones were popular the consumer demands for that product wasn't like they are today. Now when a new phone is released the demand in consumer expectations is higher because the phone is supposed to better than the previous ones. Because of the higher expectations the demand curve will shift upward causing an increase.
Government regulations
Laws that control how a business can operate.
Subsidies
Money granted by the government or public body to assist a business so the price of a commodity or service will stay low or competitive.
Number of sellers
One of the five supply factors that cause the supply curve to shift when they change.
Work productivity
Refers to the physical output of the worker or goods and services generated through paid work activity.
Give an example where taxes might shift the supply curve?
If a gallon of milk costs $2 and a state decides to impose a $1 tax on milk producers, then the supply curve would shift to the left because of the tax.
Give an example for cost of resources.
If resources are scarce then the cost would increase because there's not enough, and the supply curve will shift to the left.
How would the change in consumer income shift the supply curve? Give an example.
If someone's income increases then the demand for a normal good then the demand for the good will increase because the consumer can buy more. Causing the demand curve to shift right.
Give an example where the change in number of consumers would shift the demand curve.
If the FDA decides to change one of the ingredients in a food the demand for that good would shift in either direction because some people may like they change or they may not.
Give an example where the change in the number of sellers would affect the supply curve.
If the number of sellers in the market increase then the supply of good increases as well, causing the supply curve to shift right.
How might the change in the price of a subsidy good affect the demand curve? Give and example.
If the price of a computer supplied by the government decreases then the demand for that good will decrease because the price is low and production is low causing the demand curve to shift downward.
Change in number of consumers
The change in number of consumers that cause a shift in the demand curve.
Change in technology
The increase in the efficiency of a product.
Give an example where expectations will shift the supply curve?
The oil companies are expecting the oil wells in the US and Mexico to dry up soon causing an increase in the demand. the supply curve will shift to the left because the supply is limited.
Cost of resources
The price of resources; how much it costs.
Change in consumer expectations
When a consumers expectations towards a good changes.
Name an example where there is a change in technology?
When a new phone is released there is an increase in the efficiency which makes the phone run better and faster. This makes the supply curve shift to the right.
Change in consumer income
When the income of a consumer changes.
Change in the price of a subsidy good.
When the price of goods supplied by the government changes.
How might a subsidy shift the supply curve? Give an example.
if the government pays a car company a certain amount of money for every environmentally conscious car produced the supply curve would shift to the right.