Non-Price Determinants of Demand
Pe,
Pog,
I,
Npot,
T
|
Non-Price Determinants of Supply
Pe,
Pog,
Pres,
Tech,
Tax,
Nprod
|
Pe
-- expected price
Pe
in the future
D
today
Pe
in the future
D
today
Pog
-- price of other goods
1) substitute goods
IF: P
Maxwell House coffee
D
Folgers coffee
If:
P of one product
D
of its substitute
2) complementary goods
P of wieners
D
of buns
P
of one product
D of its compliment
I
-- income
1) normal goods
Income
D for normal goods
Income
D
for normal goods
2) inferior goods
Income
D
for inferior goods
Income
D for inferior goods
Npot
-- number of POTENTIAL consumers
Npot
D
Npot
D
T
-- tastes and preferences
Tastes
for a product
D for that product
Tastes
for a product
D
for that product
|
Pe
-- expected price
Pe in the future
S today
Pe in the future
S
today
Pog
-- price of other goods ALSO PRODUCED BY THE FIRM
P soybeans
S corn
P soybeans
S corn
Pres
-- price of resources
P autoworkers wages
costs of producing cars
S cars
Pres
costs
S
Pres
costs 
S
Tech
--technology
Improved technology
costs
S
Tax
--taxes and subsidies
Taxes
costs
S
Taxes
costs
S
Subsidies
costs
S
Subsidies
costs
S
N
-- number of producers/sellers
Nprod
S
Nprod
S
|