LESSON 6 THE MARKET NEVER STANDS STILL
6-1
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
Determinants of Demand
• Change in consumer income
• Change in tastes and preferences
• Change in the price of a substitute good
• Change in the price of a complementary
good
• Change in consumers’ price expectations
• Change in number of consumers in the
market
LESSON 6 THE MARKET NEVER STANDS STILL
6-2
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
Shifts in Demand D
em
an
d
pri
ce
Quantity of pecans per day
10 20 30 40 50 60 70 800.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
D1
A B
C D
E F
D2
LESSON 6 THE MARKET NEVER STANDS STILL
6-3
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
Determinants of Supply
• Change in the cost of productive
resources
• Change in technology
• Change in profit opportunities of
producing other products
• Change in producers’ price expectations
• Change in number of sellers in the
market
• Change in the government tax or
subsidy
LESSON 6 THE MARKET NEVER STANDS STILL
6-4
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
Shifts in SupplyS
up
ply
p
rice
Quantity of pecans per day
10 20 30 40 50 60 70 800.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
S1 S2
A
B
C
DE
F
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