Econ supply and demand quiz

Change $ of a substitute good

Something you like as much or similar to that product

change $ of Subsistute good ex.

If price of snickers increase, causes more peaople to buy Hershey

change $ of complement good

something that typically goes with it

change $ of complement good Ex

if increase of marshmallow then increase of Hershey decrease, indirect relationship

Change in preference

Has to do with popularity and how much people like it

Change in preference ex.

If taylorswift eats Hershey, demand increase , if someone bad or bad advertising decrease

Change number of consumers

If las says gotta be 2 or older

Change number of consumers Example

if 5 and up, Demands, Direct relationship or older demand decrease

Change income of people

When income increases, demand increases, and when income decreases, demand decreases. 

Change income of people Ex.

If everyone gets $500 bonus demand increase , normal good follows decrease (direct relationship)

Change of expected price

If price expected to decrease the following week

Change of expected price ex.

If we expect hersheys to be lower price next week , We’ll wait to get it then , if lower now we’ll get now, direct relationship

Change $ of resources

Price of resources increase, supply decreases , indirect relationship

Change of technology

the process of inventing new technologies and improving existing ones.Direct relationship

Change of politics

Follow the money, taxes and subsides govt. payment to business for them to do something if taxes increase supply goes down, follow the money for relationship

Change number of supplier and natural weather

Hurricane may take away crops, if Michigan gets more dairy supply, supply for dairy increases, direct relationship

Shortage

Below equilibrium

surplus

above equilibrium

surplus

Middle point that the demand and supply curve intercept