EXAMPLES OF SUPPLY AND DEMAND SHIFTS
1. IN THE MARKET FOR AUTOMOBILES.
Chrysler Shuts Down Four Plants
Two More Could Be Closed; A Confrontation Forces Supplier to Seek Chapter 11
By NEAL E. BOUDETTE, JEFF BENNETT and JEFFREY MCCRACKEN
February 5, 2008
About the seller (Chrysler). Quantity going down
Shift of supply to the left.
2. IN THE MARKET FOR NEWSPAPERS
Paper Cuts, Shrinking Advertising and Falling Profits Force Industry Turmoil
By RICHARD PÉREZ-PEÑA
Published: February 7, 2008
Circulation revenue has declined steadily since 2003, and the number of copies sold has been slipping about 2 percent a year. Some of the largest papers — including The San
Francisco Chronicle, The Boston Globe and The Los Angeles Times — have lost 30 to
40 percent of their circulation in just a few years.
Quantity definitely down. Must be about the buyer because the seller isn’t the one taking any action.
shift in demand to the left
3. IN THE MARKET FOR OIL
Costs, Regulation Are Slowing Boom; Game for Big Players
By GUY CHAZAN February 5, 2008; Page A8
CALGARY, Alberta -- After years of headlong growth, Canada's oil sands have hit a speed bump. Escalating costs, labor shortages, tax increases and the threat of tighter climate-change laws are clouding the prospects of one of the world's biggest sources of oil. And while multinationals can cope with the tougher operating environment, smaller companies are struggling.
“
Escalating costs, labor shortages, tax increases and the threat of tighter climate-change laws” are all about changing resource prices. Those prices are going up. Since resource prices are a supply determinant
shift of supply leftward.
4. IN THE MARKET FOR RETAIL GOODS AND
SEERVICES
BY VANESSA O'CONNELL
In an admission that its strategy for running a national department-store chain was flawed, Macy's Inc. said it will put more emphasis on local markets while consolidating back-office operations and eliminating more than 2,500 jobs.
The sweeping changes at Cincinnati-based Macy's come as the industry is slamming the brakes on store openings and cutting inventory
Macy’s is a seller and is clearly the initiator of the change so it must be a supply shift.
Since it is “consolidating” it is cutting the “number of sellers” supply shift to the left
5. IN THE MARKET FOR RETAIL GOODS AND
SEERVICES (the previous article continued)
… in the face of a sharp slowdown in consumer spending.
“consumer spending” is always about income which is always a demand determinant. Output lower
demand shift leftward.
6. IN THE MARKET FOR ENTERTAINMENT
INDUSTRY
BY KELLY EVANS AND JOELLEN PERRY
| Companies Featured in This Article: Hilton Hotels , Walt Disney
Recession worries surged, slamming financial markets, amid signs that service businesses
-- from hotels and retailers to banks -- may be stumbling in both the [U.S. and Europe.]
“recession” is always about income which is always a demand determinant.
Output lower
demand shift leftward.
7. IN THE MARKET FOR AGRICULTURAL GOODS
Future Farmer
January 30, 2008; Page A16
[…]Also making a contribution will be {Russia and Ukraine}, where modern techniques will dramatically improve productivity. But the heaviest lifting will be done by technology. Syngenta, based in Basel, is carving out a different approach than Monsanto, involving chemistry as much as gene technology, and working particularly closely with
(farmers) to adapt its formulas to local conditions. […]
“modern techniques” “improve productivity”” technology” “different approach” all mean technological change which is always a supply detyerminant
lower prices and/or more output
supply shift rightward.