12) Price determination

Question 1

What are some causes of shifts in the demand curve?

Answer 1

1) Substitutes
2) Income
3) Population change
4) Income tax change
5) Government spending
6) Seasonal factors
7) Fashion and taste
8) Advertising
9) Complements
10) Emotional factors

Question 2

What are some causes of shifts in the demand curve?

Answer 2

1) Wages
2) Costs of production
3) Subsidies
4) Indirect taxes
5) Technology change
6) Regulations
7) Exchange rates
8) Weather
9) Raw materials
10) Producers

Question 3

What is the equilibrium price?

Answer 3

The price at which there is no tendency to change because planned purchases are equal to planned sales