Conditions Of S&D

Question 1

What are the conditions of supply?

Answer 1

• changes in cost of production
• taxes and subsidies
• changes in price of goods in joint supply
• changes in price of substitute goods
• technical knowledge
• weather

Question 2

What are the conditions of demand?

Answer 2

• income - normal, inferior
• change in price of substitute
• change in price of complementary
• taste&preferences
• population&size
• future predictions