<Standard E.2.6 ..............................................................................................................................................................Standard E.2.8>

Identify factors that cause changes in market supply and demand.


Focus Question: What factors affect supply and demand?


Basic Supply and Demand Curve
Basic Supply and Demand Curve
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Shift in Demand Curve
DemandCurveMovementExample2.png
Movement on a Demand Curve














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Some Factors that affect the DEMAND of goods and services are: Some factors that affect the SUPPLY for goods and services are:

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1)Changes in the Price of a good or service (1)Changes in the Price of a good or service

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(2)Changes in consumers’ Income spent on goods and services (2)Changes in Technology (or the State of the Art) of business firms

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(3)Changes in the Tastes/Preferences of consumers for goods/services (3)Changes in the Tastes/Preferences of consumers for goods/services

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(4)Changes in the Prices of related goods and services: Substitutes and Complements (4)Changes in consumers’ Income spent on goods and services

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(5)Changes in government fiscal policy (spending and taxation) and monetary policy (interest rate etc)
(5)The # of business firms in an industry

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(6)Natural disasters (storms, hurricanes, earthquakes, tornadoes, floods etc (6)Changes in the Prices of related goods and services

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(7)Scientific discoveries (medical, chemical etc) (7)The Costs of factor inputs of firms (labor, capital etc)

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(8)Advertising or Commercial ads (8)Seasonality (Christmas, Easter, Valentines day etc)

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(9)Changes in the growth rate of a Population (9)Commercial ads or Advertising

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(10)The # of consumers in a market (10)Scientific Discoveries (medical, inventions, chemicals etc)

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(11)Seasonality (Christmas, Easter, Valentines Day etc) (11)Natural Disasters

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(12)Sociological factors (age, sex, education, marriage etc) (12)Government fiscal and monetary policies

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(13)The rate of growth of the Population

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(14)Sociological factors (age, sex, education, marriage etc)

Multimedia.pngCrash course on Supply and Demand

Questions and answers on supply and demand

Shift in supply and demand

lesson_plan_icon.jpg Lesson Plans:

Multimedia.pngVideos explaining supply and demand:


Examples of Changes in Supply and Demand


Apples

All About Apples: Some History, Science Friday
  • 15,000 varieties of apples were once grown in the United States
    • Now 9 out of ten apples we eat come from just 12 varieties

Drugs

Supply and demand issues affect more than just the economic lives of people. Social and cultural needs and problems can often be examined through the lens of supply and demand.
  • One such issue is that of illegal drugs and the problems that attend their production, distribution, and use. To learn more about this issue, link here

There have many cases of illegal manipulations of supply and demand. These manipulations usually have the end goal of fixing a price for the benefit of one or more companies or corporations.
  • A famous case involved the Archer Daniels Midland Corporation (ADM) in the 1990s. ADM was accused of fixing the prices of lysine, an amino acid; citric acid, a widely used flavoring agent; and high fructose corn syrup. The book Rats in the Grain details this case.
    • Link here to learn more about this case

Quinoa is a grain that is grown in the altiplano region of Bolivia and Peru. This grain has become among Americans and Europeans in recent years.
  • Link here to read a story that deals with the nuanced ways in which this new demand is affecting the indigenous farmers who live in the region


Female_Rose.png"Men Create the Demand; Women Are the Supply: Lecture on Sexual Exploitation". Donna M. Hughes, University of Rhode Island

Supply and demand of minority teachers

multicultural.pngSupply and Demand in the Atlantic Slave Trade. Be sure to explore the links on the left side of the page for more essays on factors affecting supply and demand in the slave trade.