Determinants of supply and demand (EBOOK Section 5)

Demand Determinants

Changes in any of the following will either increase (shift right) or decrease (shift left) the demand curve:

1. Tastes, preferences, and/or popularity

2. Number of buyers

3. Income of buyers

4. Price of substitute good

5. Price of complementary goods

6. Expectations of future prices of goods

Supply Determinants

Changes in any of the following will either increase (shift right) or decrease (shift left) the supply curve:

1. Prices of resources/inputs/factors or raw materials

2. Technology

3. Taxes and Subsidies

4. Price expectations

5. Number of sellers in the market