Microeconomics - Determinants of Demand & Supply

Legislation

A change in supply caused by government action

Technology

A change in supply based on improvements to existing processes

Vendors

A change in supply based on a change of the number of sellers

Output of Labour

A change of supply based onoptimisation of existing processes

Expected Change of Demand

A change of supply based on a reaction to a change in demand

Incoming Cost Change

A change of supply based on

Substitute

A change in demand based on finding a comparable product that also fits people’s needs

Complement

A change in demand based on a product’s ability to sell alongside another product

Income Change

A change in demand based on consumer’s ability to spend more on wants

Institute and Population

A change in demand based on a change in the number of consumers

Future Price Change

A change in demand based on upcoming changes in costs

Taste & Preferences

A change in demand based on existing customers weighing pros and cons of products