Economics Supply and Demand Factors
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Questions and Answers

What happens to the equilibrium price when there is a higher price of complements?

  • It remains the same
  • It increases
  • It fluctuates unpredictably
  • It decreases (correct)

    • How does a lower price of substitutes typically affect the equilibrium quantity?

  • It has no effect on the equilibrium quantity
  • It increases the equilibrium quantity
  • It causes the quantity to become highly variable
  • It decreases the equilibrium quantity (correct)

    • What is the expected effect on equilibrium price in response to a higher expected future price?

  • It stays constant
  • It decreases
  • It becomes unpredictable
  • It increases (correct)

    • What impact does higher expected future income have on equilibrium quantity?

    <p>It depends on other factors</p> Signup and view all the answers

    How does better production technology influence the equilibrium price?

    <p>It lowers the equilibrium price</p> Signup and view all the answers

    What is the effect of higher input prices on supply?

    <p>Decrease in supply</p> Signup and view all the answers

    How does an advancement in technology affect supply?

    <p>Increases supply</p> Signup and view all the answers

    What happens to current supply when higher future prices are expected?

    <p>Current supply decreases</p> Signup and view all the answers

    If the number of sellers in a market increases, what is the effect on market supply?

    <p>Market supply increases</p> Signup and view all the answers

    Which of the following represents a movement along the supply curve?

    <p>Change in input prices</p> Signup and view all the answers

    What role does the price of a good play in relation to the supply curve?

    <p>Represents a movement along the supply curve</p> Signup and view all the answers

    Which variable is NOT typically associated with a shift in the supply curve?

    <p>Good's own price</p> Signup and view all the answers

    How do expectations about future prices affect current supply decisions?

    <p>They can decrease current supply</p> Signup and view all the answers

    What happens to the demand if consumers expect an increase in their future income?

    <p>Current demand increases</p> Signup and view all the answers

    What effect does a change in the price of a good have on the demand curve?

    <p>Represents a movement along the demand curve</p> Signup and view all the answers

    Which of the following is a method to shift the demand curve for cigarettes and tobacco products?

    <p>Public service announcements about smoking risks</p> Signup and view all the answers

    When the number of buyers in the market increases, what is the effect on market demand?

    <p>Market demand increases</p> Signup and view all the answers

    Which of the following scenarios would lead to a decrease in the demand for a product?

    <p>A decrease in consumer preferences for the product</p> Signup and view all the answers

    Which of the following would shift the demand curve for a product?

    <p>A change in consumer tastes</p> Signup and view all the answers

    What would likely happen if successful measures are taken to discourage smoking?

    <p>The demand curve shifts to the left</p> Signup and view all the answers

    Which of these statements is true about consumer expectations regarding future prices?

    <p>Expecting higher future prices increases current demand</p> Signup and view all the answers

    What happens to the equilibrium price when the supply curve shifts to the left?

    <p>It increases.</p> Signup and view all the answers

    Which event would cause a leftward shift in the supply curve for ice cream?

    <p>A hurricane affecting production.</p> Signup and view all the answers

    If demand increases while supply decreases, what happens to the equilibrium quantity?

    <p>It may increase or decrease depending on the magnitudes of the shifts.</p> Signup and view all the answers

    Following the increase in sugar prices, what is the new equilibrium price for ice cream as per the given shift?

    <p>$2.50</p> Signup and view all the answers

    In a scenario with a heatwave and hurricane, what effect does the heatwave have on the demand curve?

    <p>It shifts the demand curve to the right.</p> Signup and view all the answers

    What is expected to happen to the equilibrium quantity if demand rises substantially while supply falls slightly?

    <p>It will rise.</p> Signup and view all the answers

    How does an increase in input prices generally affect the supply curve?

    <p>It shifts the supply curve to the left.</p> Signup and view all the answers

    What happens to the equilibrium quantity if both demand and supply curves shift simultaneously?

    <p>It may rise, fall, or stay the same depending on the shifts.</p> Signup and view all the answers

    What happens to the demand curve when there is a decrease in the quantity buyers wish to purchase at a given price?

    <p>It shifts to the left.</p> Signup and view all the answers

    How does an increase in income affect the demand for a normal good?

    <p>Demand increases.</p> Signup and view all the answers

    Which of the following is an example of an inferior good?

    <p>Fast food</p> Signup and view all the answers

    What effect does an increase in the price of a substitute good have on the demand for the other good?

    <p>Demand increases for the substitute good.</p> Signup and view all the answers

    If the price of printer ink increases, what happens to the demand for printers?

    <p>Demand decreases.</p> Signup and view all the answers

    Which variable is NOT a factor that can shift the demand curve?

    <p>Inputs of production</p> Signup and view all the answers

    What is the effect on demand for inferior goods if consumer income rises?

    <p>Demand decreases.</p> Signup and view all the answers

    Which pair of goods are categorized as substitutes?

    <p>Gasoline and diesel</p> Signup and view all the answers

    Which of the following shifts the demand curve to the left?

    <p>A decrease in the number of buyers.</p> Signup and view all the answers

    What happens to the demand for a good if consumers expect higher prices in the future?

    <p>Demand increases.</p> Signup and view all the answers

    Study Notes

    Supply

    • Factors that can shift the supply curve:
      • Input Prices (ราคาปัจจัยการผลิต)
      • Technology (การเปลี่ยนแปลงของเทคโนโลยี)
      • Expectations of future price and quantity (การคาคการณ์ในอนาคตเกี่ยวกับราคาและปริมาณ)
      • Number of sellers (จานวนผู้ผลิต/ผู้ขายในตลาด)
    • Input Prices (ราคาปัจจัยการผลิต):
      • Supply is negatively related to input prices.
      • Higher input prices decrease supply.
    • Technology (การเปลี่ยนแปลงของเทคโนโลยี):
      • Advancements in technology increase supply.
    • Expectations about the future (การคาคการณ์ในอนาคตเกี่ยวกับราคาและปริมาณ):
      • Affect current supply.
      • Expected higher prices decrease current supply.
    • Number of Sellers (จานวนผู้ผลิต/ผู้ขายในตลาด):
      • An increase in sellers leads to an increase in market supply.

    Demand

    • Factors that can shift the demand curve:
      • Income (รายได้)
      • Prices of related goods (ราคาของสินค้าที่เกี่ยวข้อง)
      • Tastes (รสนิยมของการบริโภค)
      • Expectations (การคาดการณ์ในอนาคต)
      • Number of buyers (จานวนผู้ซื้อในตลาด)
    • Income (รายได้):
      • Normal goods (สินค้าปกติ – อุปสงค์ต่อสินค้านั้นจะเพิม่ ขึ้นเมื่อผู้บริโภคมีรายได้สูงขึ้น เช่น รถยนต์ เสื้อผ้า อุปกรณ์อิเล็กทรอนิกส์)
        • An increase in income leads to an increase in demand.
      • Inferior goods (สินค้าด้อย – อุปสงค์ต่อสินค้านั้นจะลดลงเมื่อผู้บริโภคมีรายได้สูงขึ้น เช่น อาหารกระป๋อง บะหมี่กึ่งสาเร็จรูป บริการรถเมล์ รถยนต์มือสอง เสื้อผ้าลดราคา)
        • An increase in income leads to a decrease in demand.
    • Prices of Related Goods (ราคาของสินค้าที่เกี่ยวข้อง):
      • Substitutes (สินค้าทดแทน เช่น ก๊าซกับน้ามันเบนซิน)
        • An increase in the price of one substitute leads to an increase in the demand for the other.
      • Complements (สินค้าประกอบกัน เช่น printer กับหมึกพิมพ์ บ้าน สร้างใหม่กับกระเบื้องหลังคา)
        • An increase in the price of one complement leads to a decrease in the demand for the other.
    • Tastes (รสนิยมของการบริโภค):
      • Changes in tastes change demand.
    • Expectations about the future (การคาดการณ์ในอนาคต):
      • Expect an increase in income (อุปสงค์เพิ่มขึ้น เมื่อคาดการณ์ว่ารายได้ในอนาคตจะเพิ่มขึ้น)
        • Increase in current demand.
      • Expect higher prices (อุปสงค์เพิ่มขึ้น เมื่อคาดการณ์ว่าราคาสินค้านั้นในอนาคตจะสูงขึ้น)
        • Increase in current demand.
    • Number of Buyers (จานวนผู้ซื้อในตลาด):
      • An increase in the number of buyers increases market demand.

    Supply and Demand Together

    • Shifts in supply and demand can affect the equilibrium price and quantity.
    • Example: Hurricane and Heat Wave
      • A heat wave increases demand for ice cream, shifting the demand curve to the right.
      • A hurricane could destroy crops used to make ice cream, shifting the supply curve to the left.
      • Equilibrium price rises because demand increases, and supply falls.
      • The equilibrium quantity can increase or decrease depending on the magnitude of the shifts in supply and demand.

    Exercise: Events Affecting Equilibrium

    Event Equilibrium Price Equilibrium Quantity
    Higher price of complements and Lower price of substitutes Down Down
    Higher expected future price Up Depend
    Higher expected future income and better production technology Depend Up

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    Description

    Explore the key factors that influence supply and demand in economics. This quiz covers topics such as input prices, technology, market expectations, and the number of sellers affecting supply, along with the various elements shifting the demand curve. Test your understanding of these foundational economic concepts.

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