Business= do wht they wnt--all resources=privately owned
Illustrate change in demand
Shift to the right= decrease
Shift to the left= increase
Illustrate change in quantity demanded
Occurs only when price changes
Illustrate change in Supply
To the left= decrease
To the right= increase
Caused by change in one of the determinants of supply
Illustrate change in quantity supplied
Caused by a change in price
Determinants of Supply (six)
Production
Cost of resoruces
Prices of other comodities
Expectations
Number of sellers
Taxes and subsidies
Determinants of Demand (five)
Tate and preference- popularity
Income- rises=dmnd 4 mst goods= up
Price of related goods-price of concerts rise=dmnd for movie tickets increase (substitute goods)--dmnd 4 complementary good rises= dmnd 4 other declines--hot dogs rise=hot dog buns decline
Number of Buyers- lnger life=medical services, retirement homes
Expectations about future- snow= shovels, generators, snow blowers