Economics IB non determinants D&S poo quiz

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Income --\> normal goods

Demand:
normal goods -\> increase means demand up (more demand for better stuff, can afford), decrease means demand down (less demand for better stuff, cannot afford)

Income --\> inferior goods

Demand:
inferior goods -\> increase means demand down (more money, buy better stuff), decrease means demand up (no money, buy cheap stuff)

Preferences and tastes

Demand:
Increase \= more demand
Decrease \= less demand

Price of substitute goods

Demand:
Increase price of sub goods \= increase demand of original good
Decrease price of sub good \= decrease demand for original good

Price of complementary goods

Demand:
Increase price of comp goods \= decrease demand (less affordable set)
Decrease price of comp goods \= increase demand (more affordable set)

Population

Demand:
Increase \= more consumers \= more demand
Decrease \= less consumers \= less demand

Price of related goods --\> joint supply

Supply:
Increase price of joint good \= increase supply of both original and joint supply (more profit)
Decrease price of joint good \= decrease supply of both original and joint supply (less profit)

Price of related goods --\> competitive supply

Supply:
Increase price of comp good = decrease production + supply of original (less profit for original)
Decrease price of comp good = increase production + supply of original (more profit for original)

Government Intervention --\> tax

Supply:
Increase tax \= decrease production, thus supply (more expensive cost of production)
Decrease tax \= increase production, thus supply (less expensive cost of production)

Government Intervention --\> subsidy

Supply:
Increase subsidy \= more money \= more supplies produced
Decrease subsidy \= less money \= less supplies produced

Cost of resource prices

Supply:
Increase resource price \= less supplies
Decrease resource price \= more supplies

Changes in technology

Supply:
Advancement (up) \= more supplies
Deterioration (down) \= less supplies

Producer Price Expectations

Supply:
Expect price increase \= less supplies (hold until price high enough to profit off of)
Expect price decrease \= more supplies (need sell as much as possible before too cheap)

Number of Suppliers

Supply:
More \= increase supplies
Less \= decrease supplies

Unpredictable events

Supply: Up/good = increase supplies Down/bad = decrease supply