LESSON 6 THE MARKET NEVER STANDS STILL
Determinants of Demand
• Change in consumer income
• Change in tastes and preferences
• Change in the price of a substitute good
• Change in the price of a complementary good
• Change in consumers’ price expectations
• Change in number of consumers in the market
6-1
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 6 THE MARKET NEVER STANDS STILL
Shifts in Demand
4.00
3.50
Demand price
3.00
2.50
A
B
2.00
1.50
C
D
1.00
E
0.50
F
D1
D2
0.00
10
20
30
40
50
60
70
80
Quantity of pecans per day
6-2
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 6 THE MARKET NEVER STANDS STILL
Determinants of Supply
• Change in the cost of productive resources
• Change in technology
• Change in profit opportunities of producing
other products
• Change in producers’ price expectations
• Change in number of sellers in the market
• Change in the government tax or subsidy
6-3
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 6 THE MARKET NEVER STANDS STILL
Shifts in Supply
4.00
3.50
S1
Supply price
3.00
S2
2.50
A
2.00
B
1.50
C
1.00
D
E
0.50
F
0.00
10
20
30
40
50
60
70
80
Quantity of pecans per day
6-4
HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY