Explain the laws of demand and supply, and identify factors that cause demand and supply to shift.
Law of supply
As the price of a good rises (falls), the quantity
supplied of the good rises (falls), holding other
factors affecting supply constant.
Supply Shifters
- Input prices
- Technology or government regulation
- Number of firms
- Substitutes in production
- Taxes
- Producer expectations
The quantity of a good consumers are willing and able to purchase increases (decreases) as the price falls (rises)
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.