LESSON 6 THE MARKET NEVER STANDS STILL

6-1

HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

Determinants of Demand

• Change in consumer income• Change in tastes and preferences• Change in the price of a substitute good• Change in the price of a complementary

good• Change in consumers’ price expectations• Change in number of consumers in the

market

LESSON 6 THE MARKET NEVER STANDS STILL

6-2

HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

Shifts in Demand D

eman

d pr

ice

Quantity of pecans per day

10 20 30 40 50 60 70 800.000.501.001.502.002.503.003.504.00

D1

A B

C D

E F

D2

LESSON 6 THE MARKET NEVER STANDS STILL

6-3

HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

Determinants of Supply • Change in the cost of productive

resources• Change in technology• Change in profit opportunities of

producing other products• Change in producers’ price expectations• Change in number of sellers in the

market• Change in the government tax or

subsidy

LESSON 6 THE MARKET NEVER STANDS STILL

6-4

HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

Shifts in SupplySu

pply

pr

ice

Quantity of pecans per day

10 20 30 40 50 60 70 800.000.501.001.502.002.503.003.504.00

S1 S2

A

B

CD

EF