Free Capitalist Network - Community Archive
Mises Community Archive
An online community for fans of Austrian economics and libertarianism, featuring forums, user blogs, and more.

Provide an example of one characteristic that influences supply and demand?

rated by 0 users
Not Answered This post has 0 verified answers | 2 Replies | 1 Follower

Not Ranked
11 Posts
Points 290
JustCurious posted on Sat, Oct 2 2010 2:22 PM

without describing a change in quantity supplied or demanded. Indicate what direction the curve would move towards based on your example.

  • | Post Points: 20

All Replies

Top 100 Contributor
Male
947 Posts
Points 22,055

sounds like a homework question?

a change in preferences or income would shift demand. an increase an income might shift the demand for oranges (and other normal goods) outwards.

a change in technology (the production function) or input prices might shift the supply curve. for example, if the price of labor increases, then the supply curve for a particular good might shift inward. 

the important thing to remember is that changes in quantities supplied and demanded are movements *along* given supply and demand curves, but not shifts in the curves themselves. thats probably the point of this problem.

Ambition is a dream with a V8 engine - Elvis Presley

  • | Post Points: 20
Top 75 Contributor
1,434 Posts
Points 29,210

the important thing to remember is that changes in quantities supplied and demanded are movements *along* given supply and demand curves, but not shifts in the curves themselves. thats probably the point of this problem.

I've always understood that concept, but I've never seen it written out like that for some reason. That's really interesting.

  • | Post Points: 5
Page 1 of 1 (3 items) | RSS