Supply And Demand Flashcards
1
Q
Why does demand change?
A
Changes in tastes and fashion
Income
Population
Other factors (weather)
2
Q
Define substitute goods
A
Goods that can replace each other
3
Q
Define complement goods
A
Goods that are used together
4
Q
Why does supply change?
A
Costs of production
Subsidies
Other factors (war, weather, machinery malfunction, expectations of future price changes)
