Microeconomics: Demand and Supply Curve Shifters
5 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the most significant factor that can shift the demand curve in response to a change in consumer tastes?

  • Prices of Related goods
  • Preferences (correct)
  • The number of buyers
  • Income
  • Which of the following factors is NOT a reason for a shift in the supply curve?

  • Technology
  • Prices of Resources
  • The number of buyers (correct)
  • Expectation of Future Price
  • What would cause a shift in the supply curve if the cost of production increases due to a rise in the price of raw materials?

  • Prices of Resources (correct)
  • Prices of Related Goods
  • Taxes and Subsidies
  • Expectation of Future Price
  • Which of the following factors would cause a shift in both the demand and supply curves?

    <p>Prices of Related goods</p> Signup and view all the answers

    What would cause a shift in the supply curve if the government imposes a tax on a particular product?

    <p>Taxes and Subsidies</p> Signup and view all the answers

    Study Notes

    Demand Curve Shifters

    • Income: Changes in consumer income shift the demand curve, as higher income increases purchasing power
    • Preferences: Shifts in consumer preferences, such as changes in tastes or attitudes, influence demand
    • Prices of Related Goods: Changes in prices of complementary or substitute goods affect demand
    • The Number of Buyers: An increase in the number of buyers in the market shifts the demand curve
    • Expectations for Future Prices: If consumers expect prices to rise, they may buy more now, shifting the curve

    Supply Curve Shifters

    • Prices of Resources: Changes in the cost of production, such as labor or raw materials, shift the supply curve
    • Technology: Improvements in production technology increase efficiency, lowering costs and shifting the supply curve
    • Prices of Related Goods: Changes in prices of related goods, such as substitutes or complements, affect supply
    • The Number of Sellers: An increase in the number of suppliers in the market shifts the supply curve
    • Expectation of Future Price: If producers expect prices to rise, they may supply more now, shifting the curve
    • Taxes and Subsidies: Government policies, such as taxes or subsidies, influence production costs and shift the supply curve
    • Government Restrictions: Regulations and restrictions, such as quotas or licensing, limit production and shift the supply curve

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Test your knowledge of the factors that shift the demand and supply curves in microeconomics. Learn about the PIPET and other key factors that influence the curves.

    More Like This

    Use Quizgecko on...
    Browser
    Browser