AP Econ-Shifts in Demand and Supply

What does NICEST refer to when talking about shifts in the economy?

Shifts in Demand

What does RESTIN refer to when talking about shifts in the economy?

Shifts in Supply

What does N, in NICEST refer to?

Number of Buyers; In the market for Starbucks, the neighbor hood surrounding starbucks has a huge influx of residents, creating a larger demand for starbucks bc there is more people

What does I, in NICEST refer to?

Income; in the market for designer cars, if wages increase, the demand for nicer cars will increase bc people can now buy them with their new excess money

What does C, in NICEST refer to?

Complimentary good; in the market for choloate, and the price of marshmellows and grahm crackers, there will more of a demand for chocolate, bc smores

What does E, in NICEST refer to?

Expectations of price/time; in the market for chik-fil-a, it is announced that their prices will go up next month, demand will go up now bc its cheaper now

What does S, in NICEST refer to?

Substitute goods; in the market for icecream, if frozen yogurt prices decrease, the demand for icecream will decrease

What does T, in NICEST refer to?

Taste and prefrences; in the market for mcdonalds doctors say it cures obsietity, demand will go up

What does R, in RESTIN refer to?

Resource Prices; In the market for computers, the cost for copper goes up, the price would go up shifting supply to the left

What does E, in RESTIN refer to?

Expectations of price/ time; in the market for icecream the suppliers anticipate the price will go down, so they try to sell as much as possible now for a higher price

What does S, in RESTIN refer to?

Supply Shock; in the market for gasoline, there was extreme restricitions on middle east countries, making oil very rare, this would make gas prices go up and suppiliers can’t supply that much shifting it to the left

What does T, in RESTIN refer to?

Technology; in the market for burgers, Mcdonalds created a burger flipping machine, so it increased effieciency and ouptut, making the supply shift to the right

What does I, in RESTIN refer to?

Interactions by gov; In the market for Subarus, the government offers a tax exemption for importanting Subaru’s, that means they can make and import more at a less price, making them supply more

What does N, in RESTIN refer to?

Number of Sellers; In the market for jeans, American Eagle and GAP go bankrupt, so now there is a decrease of supply in jeans