Changes in Demand A change (rise/fall) in demand means that at ...

Changes in Demand

A change (rise/fall) in demand means that at every price, there is now a different (greater/smaller) quantity demanded Factors that change demand      

price of substitutes in consumption price of complements in consumption consumer income consumer tastes consumer expectations changes in population

The Supply Curve   

Supply shows how much producers plan to produce at every conceivable price. Quantity supplied (Qs) refers to one particular price level Supply curve = slopes upward, slope reflects producer price sensitivity, position reflects volume of supply The law of supply states that as the price rises, the quantity supplied rises and vice versa (because producers substitute out of other products)

Own-price elasticity of supply measures the responsiveness of quantity supplied of a product to its price. It reflects the sensitivity or responsiveness of producer purchasing plans to price

The steepness of the supply curve is a measure of ownprice elasticity of supply. Flatter curves mean greater elasticity (greater change in firms´ producing plans), steeper curves mean lesser elasticity A product´s own-price elasticity depends on:   

availability of inputs flexibility of sellers time horizon

Factors that change supply      

price of substitutes in production price of complements in production taxes FOP prices technology firm entry/exit