Econ -- Supply & Demand Shifters

Buyer Income

Income Rises, Demand Rises for normal goods. Income Drops, Demand Drops, Demand drops, buy inferior goods.

Tastes of Buyers

Demand increases/decreases in respond to favorability and taste of buyers

Prices of Related Goods (Substitute & Compliment)

Demand increases if substitute price rises or compliment price falls, decreases for the inverse.

Expectations of Future

Demand increases if buyers expect higher prices/shortages in the future, decreases if expect price drops or sales in the future.

Number of buyer

Demand grows as population grows, shrinks as population shrinks

Change in Input Costs

Supply increase w/ cheaper inputs (raw material, labor, energy), decreases with more expensive inputs.

Technology

Better automation, tech, machinery, efficiency rises supply. Machine breakdowns, failures drop supply.

Taxes & Subsidies

Supply rises when government gives subsidies (financial aid), drops when imposes a tax or restrictive/costly regulations

Expectations of Future

Supply increase if sellers expect prices to drop soon, decrease if anticipate prices to rise in the future.

Number of sellers

Number of sellers rises, more supply.