Buying Brainstorm!

Haircut Along with: Instead of:

MP3 Player Along with: Instead of:

T-Shirt Along with: Instead of:

Steak Along with: Instead of:

Movie Tickets Along with: Instead of:

Airline tickets to Hawaii Along with: Instead of:

Key terms Determinant- factors that affect supply or demand Complement- a good or service often purchased along with another Substitute- a good or service that is bought instead, easily replacing it.

Determinants of Supply 1. Cost of resources and production 2. Number of sellers 3. Advances in production 4. Expectations of sellers about the future

Determinants of Demand 1. Consumer tastes and preferences 2. Consumer income 3. Availability and price of substitutes & complements 4. Consumer expectations of future versions of a product