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Chapter 2 Tables Table 2.1 Determinant

Change

Demand Curve Shift

Income for Normal Good

increase

right

Income for Normal Good

decrease

left

Income for Inferior Good

increase

left

Income for Inferior Good

decrease

right

Tastes and Preferences

increase

right

Tastes and Preferences

decrease

left

Prices of Related Goods, Substitutes

increase

right

Prices of Related Goods, Substitutes

decrease

left

Prices of Related Goods, Complements

increase

left

Prices of Related Goods, Complements

decrease

right

Sales Taxes

increase

left

Sales Taxes

decrease

right

Population

increase

right

Population

decrease

left

Table 2.2 Determinant

Change

Supply Curve Shift

Input prices

increase

left

Input prices

decrease

right

Technology

increase

right

Taxes

increase

left

Taxes

decrease

right

Prices of Related Goods, Substitutes

increase

left

Prices of Related Goods, Substitutes

decrease

right

Prices of Related Goods, Complements

increase

right

Prices of Related Goods, Complements

decrease

left

Number of firms

increase

right

Number of firms

decrease

left

Table 2.3 Changes in Demand and Supply Determinants

Case

Isolated Effect of Demand Change

Isolated Effect of Supply Change

Overall Effect Together

1: Simultaneous increase in demand and supply

P increase, Q increase

P decrease, Q increase

P change ambiguous, Q increase

2: Simultaneous increase in demand and decrease in supply

P increase, Q increase

P increase, Q decrease

P increase, Q change ambiguous

3: Simultaneous decrease in demand and increase in supply

P decrease, Q decrease

P decrease, Q increase

P decrease, Q change ambiguous

4: Simultaneous decrease in demand and decrease in supply

P decrease, Q decrease

P increase, Q decrease

P change ambiguous, Q decrease...