Supply Curve Changers
The amount of companies creating sushi in a market
Change in the number of producers
When people have more money, they buy more things. When they have less money, they buy less things.
Changes in Income
Gasoline: Elastic or inelastic?
Inelastic
Cars: Elastic or Inelastic?
Elastic
As price increases, supply increases
Law of Supply
The government give you money to make more bagels
Changes in Government Policy
When there are less babies born, the demand for strollers goes down.
Number of Consumers
More than one option for a product can cause a bigger change in the demand when prices rise
Availability of Substitutes
How readily available the things we need to make products are.
Availability of Inputs
As price increase, quantity demanded decreases and vice versa.
Law of Demand
A volcanos destroys part of a sushi restaurant
Changes in conditions due to natural disasters or international events
1970's styles are making a comeback.
Consumer tastes and preferences
When a laptop is discounted $400 the demand can change greatly. When a bar of soap raise $2 demand changes little.
Price relative to consumer income
How quickly we can get the things we need to create more of a product.
Mobility of Inputs
The quantity of a good or service that consumers are willing and able to buy at various prices
Demand
Your bagel shop gets new electric mixers so bakers don't have to mix dough by hand anymore
Changes in technology
If the price of Birkenstocks gets to high, the demand for rubber flipflops will go up.
Price of Substitute Goods
Things we need vs. things we want
Necessities vs. Luxuries
Toothpaste can be stored for a long period of time. Bananas cannot.
Storage Capacity
The quantity of a good that producers are willing and able to offer
Supply
The price of a sushi ingredient increase
Changes in the cost of inputs
If the price of tennis rackets go up, people the demand for tennis balls will go down.
Prices of complementary goods
When gas prices first raise, demand is not immediately affected. As time goes on, demand begins to change more.
Time since price change
Banana farmers cannot increase their supply of bananas right away. After some time has passed, banana farmers can increase their supply
Time needed to adjust to price change
A graph of the relationship between the price of a good or service that producers are willing and able to offer
Demand Curve