AP Macroeconomics Chapter 1, PPT, part 6
Tastes and Preferences (TRIBE)
EX. People prefer the Nike shoe to other brands because it uses newer technology. Demand increases, curve shifts right.
Related Goods and Services (TRIBE)
EX. The price of shoe laces quadruples. People start to wear more sandals, demand decreases, curve shifts left
EX. NBA gives all players a huge raise, they can now buy more shoes. Demand increases-Curve shifts right
Buyers, Number of, and Consumer Information (TRIBE)
EX. Sports arena is closed for renovations and all games are moved to a different county. Fewer Sports fans visit the Nike store next to the arena. Fewer buyers demanding goods, Demand decreases-curve shifts left
EX. People hear that pirce of Nikes will go up in the future. They stock up now. Demand increases-curve shifts right
Resource:Cost and Availability (ROTTEN)
EX. A major tech plant is destroyed and computer chips for gaming are unavailable for Nintendo(R) to use in production. Nintendo’s supply decreases-the curve shifts.
Other Goods’ Price (ROTTEN)
EX. The price of video monitors decreases. People are buying more monitors and may be tempted to get a new Nintendo game system as well. Nintendo’s supply increases-the curve shifts to the right.
Taxes, Subsidies, and Government Regulation (ROTTEN)
EX. The Government doubles taxes on al products used to manufacture Nintendo consoles in the US. This causes Nintendo’s manufacturing costs to increase and lowers profitability. SUpply decreases-curve shifts left
Technology (Productivity) (ROTTEN)
EX. New machine developed, assembling consoles in half the time, causing Nintendo’s costs to decrease. Supply increases-curve shifts right.
Expectations of the Producer (ROTTEN)
EX. nintendo expects higher demand for new consoles for the holiday season. Supply increases-curve shifts right
Number of Firms in the Industry (ROTTEN)
EX. 3 competitive video game companies close, less competition for Nintendo, market supply decreases due to fewer businesses in the industry- curve shifts left.
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