Factors That Change Supply and Demand in a Market

Here are some important things that can affect supply and demand:

1. Price Changes

   • When prices go up by 10%, people usually buy 5-10% less of that product.

2. Consumer Preferences

   • When new trends become popular, demand for products can rise by as much as 20%.

3. Income Levels

   • If people’s income goes up by 1%, they may buy 0.5% more normal goods.

4. Number of Suppliers

   • If there are 10% more suppliers in the market, the total supply usually goes up a lot.

5. Production Costs

   • If the costs to make products rise by 15%, the supply typically decreases by about 10%.

Knowing these factors is really important for predicting how the market will behave.