Factors that will shift the demand curve left or “in” People buy less at each price!! 1.Decrease in income 2.Price of substitute falls 3.Price of compliment increases 4.Poor product expectations 5.Expect price to fall

Shift the demand curve right or “out” are exactly the opposite! People will buy more at each price!! 1.Increase in income 2.Price of substitute rises 3.Price of compliment decreases 4.Good product expectations 5.Expect the price to remain the same/increase

Factors that shift supply curves left or “in” 1.A decrease in producers 2.A decrease in technology 3.An increase in input cost 4.An increase in the price of a related output Factors that shift supply curves right or “out” 1.An increase in producers 2.An increase in technology 3.A decrease in input cost 4.A decrease in the price of a related output

Supply Curve shifter/mover: (SI=Shift in; SO=shift out; M=mover) ______ 1.) Ford installs new technology meant to lower production costs by 20%. ______ 2.) Federal government requires a metal connection instead of plastic for all child safety seats. ______ 3.) Old Navy increases all of its prices by 5%. ______ 4.) Computer chips for Dell computers drop in price. ______ 5.) Cost of shipping goes up for Mattel. SO SI M SO SI

Demand Curve shifter/mover: (SI=Shift in; SO=shift out; M=mover) ______ 1.) Ford lowers the price of their Escape. ______ 2.) “Frankenstorm” hits and threatens power outages which has what effect on the demand curve for batteries? ______ 3.) What will happen to the demand curve of Kindle Fire if Apple lowers the prices on their iPads? ______ 4.) Mattel lowers the prices of toys for the holiday shopping season. ______ 5.) There is a “health tax” imposed on all soda in NYC. What happens to the demand curve for Pepsi products in NYC? M SO SI M

Please put an “S” for substitute or a “C” for complement: _____ 1.) Wegman’s brand coffee and Folgers _____ 2.) Coke and Pepsi _____ 3.) Hammer and nails _____ 4.) Spaghetti and bread Demand curves are only dependent on what? __________________ ____________________ always goes on the x-axis and ____________________ always goes on the y-axis for supply and demand curves. S S C C PRICE QUANTITY PRICE

D2 D1S1 S2 Quantity in gallons Gasoline Price per gallon

What is the equilibrium price 1: ________ What is the equilibrium price 2: ________ What does equilibrium price really tell us? $4.65 $4.60 Where the market is in balance for that product

Demand is considered ______________ when a change in price leads to a LARGE change in quantity demanded. Give three examples: ______________________________________________ Now draw what this type of curve would look like: (remember to label your axis) IPODS, BOOKS, DVD’S ELASTIC P Q

Demand is considered ______________ when a change in price leads to a SMALL change in the quantity demanded. Give three examples: ______________________________________________ Now draw what this type of curve would look like: (remember to label your axis) INELASTIC GAS, SALT, BABY FORMULA P Q

a.discourage consumers from buying b.b. discourage producers from leaving a market c.motivate consumers to buy d.d. motivate producers to enter a market _______ Lower prices generally

a.a. gain a bigger share of the market b.b. increase their employee salaries c.c. prepare for bankruptcy d.d. reduce their share of the market _______ Companies engage in competitive pricing to