The Market Never Stands Still

Non-Price Factors (“shifters” of Demand) Change in consumer income Change in tastes and preferences Change in the price of a substitute good Change in the price of a complementary good Change in consumers’ price expectations Change in number of consumers in the market

Shifts in Demand Demand price Quantity of pecans per day

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Pecan Article

Pecan statements 1.Lunar New Year, Chinese love Pecans on New year 2.Corn syrup, used with pecans to make pecan pie, has risen in price 3.Price of walnuts increases 4.Household income increases in China 5.Price of pecans drops 6.US trade agreements allow for more pecans to be sold in more countries 7.Pecan prices expected to be higher next year 8.Famous celebrities seen eating pecans at award ceremonies

Non-Price Factors (“shifters” of Supply) Change in the cost of productive resources Change in technology Change in profit opportunities of producing other products Change in producers’ price expectations Change in number of sellers in the market Change in the government tax or subsidy

Shifts in Supply Supply price Quantity of pecans per day

Pecan Statements (supply) 1.US farmers cutting down pecan groves to make way for more profitable crops 2.Price of pecan-shelling machines rises greatly 3.Price of pecans falls as consumers prefer hazelnuts* 4.Scientists successfully produce genetically modified pecan trees that can produce twice as much as a normal tree 5.Engineers develop machines that “shake” the nuts out of trees 6.US gov’t provides subsidies to pecan growers 7.A flood destroys pecan groves in Georgia 8.Pecan producers expect lower pecan prices due to declining demand for nuts