Lesson 8 ISS Notes

TIPSE

An acronym used to remember the factors that impact demand: Tastes, Income, Population, Substitutes and Complements, Expectations.

Tastes

The preferences of consumers that influence their purchasing decisions.

Income

The financial resources available to consumers, impacting their ability to buy goods and services.

Population

The total number of consumers in a market, affecting demand levels.

Substitutes and Complements

Products that can replace one another (substitutes) or products that are used together (complements), influencing demand.

Expectations

Consumer beliefs about future prices or quality, influencing their current purchasing behavior.

WAGTIPS

An acronym used to remember the factors that impact supply: Weather, Actions of Government, Technology, Input costs, Prices of related goods, Sellers.

Weather

Environmental conditions that can affect the production capacity of goods.

Actions of Government

Regulations and policies set by the government that can influence supply levels.

Technology

Advancements that improve production efficiency and impact supply.

Input Costs

Expenses associated with labor, materials, and other inputs required for production.

Prices of Related Goods

The cost of other goods that can influence the supply of a particular product.

Sellers

The number of entities offering goods for sale, impacting market supply.