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Demand and Supply determinants
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Demand Law of Demand – with an increase of price demand decreases (the curve moves to the left) BUT there are some non-price factors which affect the demand changes determinants
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Demand determinantes 1. Subjective tastes of consumers 2. Changes of consumers’ quantity 3. Changes in consumers’ income 4. Abutting goods on the market сопряженные товары Neutral products (chairs …
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Supply Law of Supply - increase of price also increases the amount of supplied goods
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Supply determinants 1. Producer’s costs Taxes (taxes S ) Resources Technologies (implem-tion of new technology S ) 2. The amount of producers on the market (amount supply )
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3. Producer’s expectations 3. Producer’s expectations Expectation of tomorrow’s price increase can increase the supply today 4. Prices on adjacent markets цены на смежных рынках Prices on …
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