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Overview of Supply and Demand Shifts definitions

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  • Supply Curve
    A graphical representation showing the relationship between price and quantity offered by producers at various price levels.
  • Demand Curve
    A visual tool illustrating how much consumers are willing to purchase at different price points.
  • Nature
    Environmental or natural events that can directly alter the amount of goods producers can offer.
  • Expectations
    Producer beliefs about future prices that can influence hiring, storage, or current output decisions.
  • Subsidies
    Financial support from the government that lowers production costs and encourages increased output.
  • Technology
    Advancements or improvements in production methods that typically boost the quantity supplied.
  • Number of Suppliers
    The total count of producers in a market, which affects the overall market supply.
  • Substitute in Production
    An alternative good that can be produced with the same resources, affecting supply when its price changes.
  • Input Prices
    Costs of resources like labor and materials required for production, impacting the amount producers can supply.
  • Taxes
    Government-imposed charges that increase production costs and can reduce the quantity supplied.
  • Storage
    Holding back current production based on expectations, which temporarily reduces market supply.
  • Movement Along the Curve
    A change in quantity supplied or demanded resulting solely from a price change, not from a shift in the curve.
  • Shift Summary Page
    A consolidated reference listing all factors that cause supply and demand curves to shift, aiding exam preparation.
  • Directly Proportional Factors
    Elements that cause supply to increase when they rise, as captured by the NESTS mnemonic.
  • Inversely Proportional Factors
    Elements that cause supply to decrease when they rise, as summarized by the SITE mnemonic.