Determinants of Demand and Supply

as prices go up, quantity demanded goes down.

• Law of Demand

• Law of Supply

• Market Equilibrium

• Market Disequilibrium

Jennifer Lopez is seen wearing a new short and sleek dress. People now want this dress. Which demand determinant is this most likely to fall under?

• Change in Consumer Income

• Change in Consumer Tastes

• Change in Price of Substitute Good

• Change in Consumer Price Expectations

Labor costs are rising through the roof! Minimum wages are now at $25 an hour. This means even the basic item will need to cost more to keep up with rising costs. What determinant of supply does this most relate to?

• Change in Technology

• Change in Number of Sellers in the Market

• Change in Cost of Factors of Production (Resource Price)

Identify the correct determinant of supply.
Example: If airlines expect prices for airline tickets to fall in September when families are less likely to travel due the school calendar, they will supply more during the summer months when they can charge higher fares.

• Change in income

• Change in number of sellers

• Expectations

• Change in technology

Identify the correct determinant of supply.
Example: As the demand for DVDs decreased due to consumer preference for streaming movies, the market price for DVDs fell. This lower market price caused sellers to leave the DVD market and supply decreased. 

• Government regulation

• Change in number of sellers

• Change in income

• Change in expectations

Which of the following answer choices are Determinants of Supply?

• Number of Sellers

• Cost of Inputs

• Taxes

• Technology

• Price Expectations

Which of the following is a determinant of demand that involves the number of consumers in the market?

• Consumer Income

• Consumer Tastes

• Number of Buyers

• Price of Related Goods

If a new technology reduces production costs, which determinant of supply is affected?

• Government Regulations

• Technology

• Number of Sellers

• Consumer Expectations

A sudden increase in consumer income leads to a higher demand for luxury cars. Which determinant of demand does this illustrate?

• Consumer Tastes

• Consumer Income

• Price of Related Goods

• Number of Buyers

When the price of coffee increases, the demand for tea increases. What determinant of demand does this represent?

• Consumer Income

• Price of Substitute Goods

• Consumer Tastes

• Number of Buyers