Shifts in D&S - suppliers are more willing or able to...

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Shifts in demand When the price of the item remains constant, yet people are more willing or able to buy more (or less) of that item, it is called a change in demand. Changes in demand cause a shift of the demand curve, either to the right for an increase in demand or to the left for a decrease in demand.
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Sources of demand changes There are many sources of demand changes One such source is a change in population
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Sources of demand changes Changes in income Changes in tastes
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Sources of demand changes A change in the price of one item can influence the demand of another item. For example, an increase in the price of Pepsi could increase the demand for Coke.
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Sources of demand changes Expectations about future prices and income can change demand
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Changes in Supply As with demand, there are times when the item’s price remains constant but
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Unformatted text preview: suppliers are more willing or able to provide more (or less) of the product. • This is called a change in supply and involves a shift of the supply curve. • The curve will shift right if there is an increase in supply and left if there is a decrease in supply. Sources of supply changes • There are many sources of supply changes. • One is the price of inputs • Inputs are the resources used to make products. • These include: natural resources, labor and machines or buildings. Sources of supply changes • Changes in technology • Any other changes in the cost of production besides a change in input price: for example a change in taxes. Sources of supply changes • Expectations also play a role in supply. • What the supplier expects their price to be in the future can influence how much is supplied now....
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This note was uploaded on 04/09/2008 for the course ECON 101 taught by Professor Micro during the Spring '08 term at Siena College (Loudonville).

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Shifts in D&S - suppliers are more willing or able to...

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