金陵中学河西分校国际部

Demand and supply

发布时间：2016-04-12 浏览次数：1290

•There are five important factors thatcan shift the

demand curve: (determinants ofdemand)

•Changes in the prices of related goodsor services

•Changes in income

•Changes in taste orpreference

•Changes inexpectations

•Changes in the number ofconsumers

Changes in the prices of related goodsor services

•Substitutes

A pair of goods aresubstitutes if a rise in the price ofone goodmakes the demand for the other good increase.

(serve a similarfunction)

•Complements

Apair of goods are complementsifan increase in the price of one good makes demand for the other gooddecrease

(areconsumed together）

Changes in Income

•When individuals have more income, theyare normally more likely to purchase a good at any givenprice.

•Most goods are normal goods: the demandfor them increases when consumer income rises.

•Some goods are inferior goods: thedemand for them decreases when income rises.