Changes in Income: 

As income increases, people increase how much they buy.

As income decreases, how much people buy decreases.

Determinant:  Demand or Supply?

Determinant of Demand

Changes in price of related goods (Substitute):

As the price increases for a good, the amount people want to buy of the substitute good goes up.

As the price decreases for a good, the amount people want to buy of the subsitute good goes down.  

Determinant:  Demand or Supply?

Determinant of Demand

Changes in price of related goods (Compliment):

 One product price goes up, demand for a different product that goes with it goes down.

One product price goes down, demand for a different product that goes with it goes up.

Determinant:  Demand or Supply?

 Determinant of Demand

Changes in the size or composition of popluation:

How much is sold of a product goes up & down with the population.

An increase in young families creates an increase the amount of specific goods that are purchased.

Determinant:  Demand or Supply?

Determinant of Demand

Changes in price expectations:

I expect the cost of an airplane ticket will go up the closer to the trip so I buy now to avoid a more expensive ticket. 

Determinant:  Demand or Supply? 

Determinant of Demand

Changes in taste or preference:

A popular singer is seen wearing a new shoe, which makes all his fans want to buy the shoes as well.

Determinant:  Demand or Supply?

Determinant of Demand

Change in cost of resources used to make a good:

Resources cost goes up, amount made goes down.

Resouces cost goes down, amount made goes up.

Determinant:  Demand or Supply?

Determinant of Supply

Change in technology used to make the good:

A new technology allows for more efficiency, amount of good produced goes up.

Determinant:  Demand or Supply?

Determinant of Supply

Producer's expectations of the cost of resources:

Producer thinks the price of a resource needed to make a product is about to go up, so they makes more of the product now to get it made at cheaper price.

Determinant:  Demand or Supply?

Determinant of Supply

Number of sellers in the market (Competition):

More sellers of a good, means more production of a good (higher amount of the good available).

Less sellers, means less production of a good (smaller amount of the good available). 

Determinant:  Demand or Supply?

Determinant of Supply

Producer's Price Expectation:

Producer expects the cost at which they can sell a product is going to lower; they produce more now to be able to sell at the higher price before the change.

Determinant:  Demand or Supply?

Determinant of Supply