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In lesson 3a you learned how the
non-price determinants of demand (Pe, Pog, I, N, T) affect
the demand curve.
In lesson 3b you learned how the
non-price determinants of supply (Pe, Pog, Pres, Tech, Tax,
Nprod) affect the supply curve.
After studying this lesson you will
be able to use these determinants and the supply and demand
graphs to explain why prices change.
For example you will understand why:
"It's becoming almost an annual tradition: As fuel prices
rise in the spring, so do the prices of hybrid cars.
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