Change in Quantity Demanded
 Movement along a demand curve from
one price-quantity point to another due to
a change in price.
Change in Quantity Supplied
 Movement along a supply curve from
one price-quantity point to another due to
a change in price.
Change in Demand & Supply
 Change in the demand or supply
schedule due to a change in a non-price
factor.
 Causes the demand or supply curve to
shift to the left or the right depending on
the nature of the change.
Non-price Factors Influencing Demand
(Determinants of Demand)
 Taste, fashion, and popularity.
 Buyers’ incomes.
 Buyers’ expectations concerning future
income, prices, or availabilities.
 Prices of goods related as substitutes and
compliments.
 The number of buyers in the market.
Increase in Demand
 Change in a non-price factor that causes
more of a product to be demanded at
each price.
 Demand curve shift to the right.
• Decrease in Demand
 Change in a nonprice factor that causes
less of a product to be demanded at each
price.
 Demand curve shift to the left.
Non-price Factors Influencing Supply
(The Determinants of Supply)
 The cost of producing an item.
 Expectations about future market
conditions.
 A change in Technology.
 The number of sellers in a market.
 Natural Disaster or other event.
Increase in Supply
 Change in a non-price factor that causes
more of a product to be supplied at each
price.
 Supply curve shift to the right.
Decrease in Supply
 Change in a non-price factor that causes
less of a product to be supplied at each
price.
 Supply curve shift to the left.
Effect of an Increase in Demand
 Causes the equilibrium price and quantity
to increase.
Effect of a Decrease in Demand
 Causes the equilibrium price and quantity
to decrease.
• Effect of an Increase in Supply
 Causes the equilibrium price and quantity
to increase.
• Effect of a Decrease in Supply
 Causes the equilibrium price and quantity
to decrease.