Consumer Income
Income
goes up; consumers will buy more shifting demand to the right. Goes down,
consumers will buy less shifting demand to the left.
Consumer
Expectations
If consumers think prices, for
economy, technology, etc., will change in the future this will have an effect
on their consumption of today.
Population
Population increases the number of
consumers and can shift demand to the right. Decreases shift to the left.
Consumer Tastes and Advertising
Consumer’s change over time the
things that they want. As they change their tastes, their demand shifts to the
right or the left.
Price of Related Goods
Complementary and Substitute items
can have an effect on what consumers will purchase and increase the demand for
products.
What
are are the Determinants of Supply?/ What Causes a Shift in Supply?
Effects
of Rising Costs
Input costs can have a major effect
on the production and supply of goods and services. Gas prices can limit the
services of a landscaper or paper delivery person.
Technology
Increases
in the ability to produce because of technological advances can shift the
supply curve to the right. Breakdowns in technology can shift it to the left.
Subsidies
Government
payments to firms can act as an incentive to produce more, which can affect
supply. If government removes subsidies the curve will shift left.
Taxes
Government
taxation towards firms can act as an incentive to produce, which can affect
supply. If government removes taxes the curve will shift left, increases shift
right.
Future
Expectations
How
suppliers view the future of the economy will affect their production of
inventory today. If they think the economy is strong they will increase
production today and Vice versa.
Number
of Suppliers
Firms increase whenever their profit
is to be made. They decrease whenever profit is reduced. Both will shift the
curve to the right or the left.