Factors Influencing Supply and Demand in Economics

Supply Factors

Elements influencing the quantity supplied in markets.

Cost of Production

Expenses incurred in manufacturing goods.

Technology

Advancements that improve production efficiency.

Taxes

Government levies affecting production costs.

Subsidies

Financial aid to support production costs.

Number of Sellers

Total businesses offering similar products.

Natural Events

Environmental occurrences impacting supply availability.

Demand Factors

Elements influencing the quantity demanded in markets.

Complements

Goods consumed together, affecting demand.

Substitutes

Goods that can replace each other in consumption.

Consumer Tastes

Preferences influencing purchasing decisions.

Consumer Income

Wealth available for purchasing goods.

Number of Consumers

Total individuals purchasing in a market.

Expectations

Future predictions affecting current buying behavior.

Demand Elasticity

Sensitivity of demand to price changes.

Perfect Competition

Market with many sellers offering identical products.

Monopolistic Competition

Market with many sellers offering differentiated products.

Oligopoly

Market dominated by a few large firms.

Monopoly

Market controlled by a single seller.

Market Failure Conditions

Factors leading to inefficient market outcomes.

Antitrust Laws

Regulations preventing monopolistic practices.

Consumer Protection Laws

Laws ensuring accurate information for consumers.

Price Controls

Government regulations on minimum and maximum prices.

Fiscal Policies

Government spending and tax policies affecting economy.

Monetary Policies

Central bank actions managing money supply and interest rates.