Micro Examples: demand & supply shift Flashcards
Examples of the basic economic problem
Water scarcity in India & SouthAfrica
Food scarcity worldwide
Demand shift right
Spanish holidays
Commodities like oil
Demand shift left
Student housing (UK) Print newspapers Dining in (cheaper services like deliveroo)
Supply shift right
India Subsidies (rice, gas fuel) Air travel
Why subsidise items such as gas, fuel and rice
Decrease costs of production
Goods more affordable
How does air travel make supply shift right?
More firms entering market
Increase supply, prices decrease
Supply shift left
Fizzy drinks - sugar tax.
Increases costs of production
Increase prices
Supply less
PED inelastic
Cigarettes alcohol sugary drinks fast food (Addictive) public transport basic commodities (necessity goods, few substitutes )
PES inelastic
Basic commodities - hard to store, production lags
Gas/electricity
Housing
XED complements
Printers and ink
XED substitutes
Fast food burgers
Smartphones
YED normal goods
Restaurant dining
Foreign holidays
Designer clothes
House renovations
YED inferior goods
Own brand food