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Factors that affect supply and demandstudy guide

Factors that affect supply and demandstudy guide - Factors...

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Factors that affect supply and demand (1)Changes in the Price of a good or service (2)Changes in consumers’ Income spent on goods and services (3)Changes in the Tastes/Preferences of consumers for goods/services (4)Changes in the Prices of related goods and services: Substitutes and Complements (5)Changes in government fiscal policy (spending and taxation) and monetary policy (interest rate etc) (6)Natural disasters (storms, hurricanes, earthquakes, tornadoes, floods etc) (7)Scientific discoveries (medical, chemical etc) (8)Advertising or Commercial ads (9)Changes in the growth rate of a Population (10)The # of consumers in a market (11)Seasonality (Christmas, Easter, Valentines Day etc) (12)Sociological factors (age, sex, education, marriage etc) D =(∆P, ∆M , ∆T, ∆Prg, ∆Gp, N, S, A, ∆P, #C, S, Sf) Some of factors that affect the supply for goods and services are the following: (1)Changes in the Price of a good or service (2)Changes in Technology (or the State of the Art) of business firms (3)Changes in the Tastes/Preferences of consumers for goods/services (4)Changes in consumers’ Income spent on goods and services (5)The # of business firms in an industry
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