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Transcript
Handout: Supply and Demand
Decision tree: Is the factor that changed a demand side or supply-side
factor? If it is a demand-side factor, see the demand side key below. If it is a
supply-side factor, see the supply-side key below.
Demand Side Key:
Change in price of
product
Change in:
prices of related goods
income
wealth
tastes and preferences
consumption technology
expectations
size of household
(number of households)
Change in quantity
demanded
Change in demand
Movement
along curve
Shift of
curve
Supply Side Key:
Change in price of
product
Change in:
prices of related goods
technology
input prices
expectations
(number of firms)
Change in quantity
supplied
Change in supply
Movement
along curve
Shift of
curve
Note: number of households and firms refers to market demand and supply
curves but not individual household demand curves and individual firm
supply curves.
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