Understanding Supply and Demand

Front

What is a shift in demand?

Back

A shift in demand occurs when the entire demand curve moves left or right due to changes in non-price factors.

Front

Factors that can cause a shift in demand for a video game.

Back

Changes in consumer preferences, Changes in income levels

Front

How does an increase in consumer income affect demand for various products?

Back

An increase in consumer income typically increases demand for normal goods.

Front

What is the effect of consumer preferences on demand for smartphones?

Back

Consumer preferences significantly affect demand by increasing or decreasing it based on the desirability of products.

Front

How can the price of substitute smartphones affect Westy's demand for the original model he is interested in?

Back

The price of substitute smartphones can shift demand by causing consumers like Westy to switch between models based on relative prices.

Front

What is a shift in supply?

Back

A shift in supply occurs when the supply curve moves left or right due to changes in external factors.

Front

Factors that can lead to a shift in supply in the market.

Back

Changes in production costs, technological advancements

Front

How does a decrease in production costs affect the supply of lemonade?

Back

An increase in supply.

Front

What role does technology play in shifting supply in a local bakery?

Back

Technology increases supply by improving efficiency and reducing production costs.

Front

How does the number of suppliers impact supply in a local market?

Back

The number of suppliers impacts supply by affecting competition and availability; more suppliers generally increase supply, while fewer suppliers decrease it.