Ch03Spring2011

1 changes in nonprice changes determinants of demand

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Unformatted text preview: Cause the demand schedule to Cause shift to the left (-) or to the right shift left (+) (+) Defined as a change in demand Defined change Changes in demand caused by: Number of buyers Tastes and preferences Tastes Income Income Expectations of buyers Expectations Prices of related goods Prices See Exhibit 3, page 54 See Exhibit 4, page 55 See 12 12 MOVEMENT ALONG VS. A SHIFT OF THE DEMAND SCHEDULE, P. 59 SCHEDULE, Figure 3.3 THE MARKET DEMAND FOR COMPACT DISCS, P. 57 COMPACT Figure 3.2 SUMMARY: IMPACT OF SUMMARY: CHANGES IN NONPRICE DETERMINANTS OF DEMAND, Pages 62-63 Pages Number of buyers (+) Tastes and preferences (+) Incomes Incomes Normal good = (+) Inferior good = (-) Future price expectations (+) Prices of related goods in consumption Substitute goods (+) Complementary goods (-) 15 15 THE PRODUCT MARKET: THE DETERMINANTS OF SUPPLY DETERMINANTS The meaning of “supply” A hypothetical choice function which hypothetical relates quantity supplied of X to P(x), all other things equal P(x) as a determinant of supply: A change in the P(x) causes the change quantity of X supplied to change, all other things equal other 16 16 AN INDIVIDUAL SELLER’S SUPPLY SCHEDULE FOR COMPACT DISKS, P. 64 64 Figure 3.4 NONPRICE DETERMINANTS OF NONPRICE SUPPLY, Page 69. SUPPLY, Cause the...
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This note was uploaded on 01/12/2012 for the course ECN 211 taught by Professor Kingston during the Spring '08 term at ASU.

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