The Nature of Markets - How Factors Affect Demand and Supply
Once you have correctly separated the factors out in the previous activity, print out the table below to explain what effect you think it will have on the demand or the supply of a good. We have done one for you as an example.
| Factor | Effect |
|---|---|
| Income | This will affect demand. If people are paid more, then they are likely to increase demand for a good or service. If their income falls, then they will be likely to reduce their demand for goods and services. |
| Climate | |
| Age | |
| Technology | |
| Price of substitutes | |
| Expectations of producers | |
| Advertising | |
| Taste | |
| Cost of production | |
| Fashion | |
| Nature | |
| Quality | |
| Size of the population | |
| Price of complements |
Image: Natural disasters like floods and hurricanes can have a major effect on the supply of many different types of goods - farmers can have their crops badly damaged, frost can kill off young fruit, and Hurricane Katrina recently had a major effect on the world supply of oil. Copyright: Eddie Wheel, from stock.xchng.
Related lesson plan:
Related mind map: