Term
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Definition
Determinant of Supply
As price increases, supply decreases.
As price decreases, supply increases. |
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Term
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Definition
Determinant of Supply
As technology increases, supply increases.
As technology decreases, supply decreases. |
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Term
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Definition
Determinant of Supply
As taxes increase, supply decreases. As taxes decrease, supply increases. |
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Term
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Definition
Determinant of Supply
As subsidies increase, supply increases.
As subsidies decrease, supply decreases. |
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Term
| Prices of Other Goods (A or B) |
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Definition
Determinant of Supply
As the price of A increases, supply of B decreases.
As the price of A decreases, supply of B increases. |
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Term
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Definition
Determinant of Supply
If the price will increase tomorrow, decrease supply today.
If the price will decrease tomorrow, increase supply today. |
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Term
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Definition
Determinant of Supply
If the number of suppliers increases, supply increases.
If the number of suppliers decreases, supply decreases. |
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Term
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Definition
Determinant of Demand
As consumers like a product more, demand increases.
As consumers like a product less, demand decreases. |
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Term
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Definition
Determinant of Demand
As number of buyers increases, demand increases.
As number of buyers decreases, demand decreases. |
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Term
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Definition
Determinant of Demand
As income increases, demand for inferior goods decreases and demand for normal or superior goods increases.
As income decreases, demand for inferior goods increases and demand for normal and superior goods decreases. |
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Term
| Price of Related Goods - Substitutes (A or B) |
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Definition
Determinant of Demand
As the price of A increases, demand of B increases.
As the price of A decreases, demand for B decreases. |
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Term
| Price of Related Goods - Complements (A and B) |
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Definition
Determinant of Demand
If the price of A increases, demand for B decreases.
If the price of A decreases, demand for B increases. |
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Term
| Price of Related Goods - Unrelated (A or B) |
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Definition
Determinant of Demand
No relationship exists. |
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Term
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Definition
Determinant of Demand
If price will increase tomorrow, demand increases today.
If price will decrease tomorrow, demand will decrease today. |
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