It is very important in the study of economics to know the difference between “demand” and “quantity demanded” and between “supply” and “ quantity supplied.”
A change in price will result in a change in quantity demanded or quantity supplied and thus cause movement up or down either curve.
There are other non-price determinants of demand and supply that can cause the curves to shift either right or left, indicating a change in demand or supply at every price. A shift to the right – also referred to as an outward shift – denotes an increase in demand (supply), while a shift to the left – aka an inward shift – denotes a decrease.
Your Task: Choose one non-price determinant of demand and supply each and discuss how it applies to a currentmarket topic. This is your original post, for up to 4 points.
Example: In recent years, U.S. consumer preferences shifted from fresh flowers to ornamental plants [Ref: http://www.intracen.org/blog/Cut-Flower-imports-into-the-United-States-diminished/; Source: International Trade Centre]. The primary impact of this would be an inward shift of the demand curve for fresh flowers and an outward shift in the demand curve for ornamental plants.
I have provided an example of a shift in the demand curve only; you are expected to provide an example of each.
For your response post, read your classmates’ posts and respond to at least one that caught your attention. It could be a product or service you did not know about, or a context you were not familiar with.
The post Title: Non-Price Determinants of Demand and Supply in the Current Market: A Discussion of Shifts in Demand and Supply Curves appeared first on around the clock essays.