1. Determinants of Supply and Demand

2. Determinants of Supply and Demand
Factors that change the quantity demanded or supplied

3. Determinants of Demand
1.Consumer preferences 2. Market Size 3. Income 4. Price of related goods 5. Consumer Security

4. Consumer Preferences
Tastes change What are some examples of tastes changing and therefore changing the amount of a product that is demanded?

5. Market Size
The amount of people to buy the product may change What is a situation where this may occur?

6. Income
As the average income goes up or down, sales for products will also change What is an example of this happening?

7. Prices of related Goods
Substitutes- products easily replaced with others Complements- products purchased together What are some substitutes and complements?

8. Consumer Security
If you feel good or anxious about future- it will affect how you spend money Give examples

9. Determinants of Supply
Technological improvement
Resource prices
Taxes and subsidies
Competition

10. Technological Improvement
If productivity can increase

11. Resource Prices
If prices of what goes into the product go up or down Steel shortage?

12. Taxes and Subsidies
Subsidy- monetary grant to a business to help ease production or develop a new product Taxes- add to production costs

13. Competition
More producers enter the market