Determinants of Demand vs Determinants of Supply
Determinants of Demand and Determinants of Supply are two Supply & Demand concepts in AP Economics that students often mix up. In short: determinants of demand is determinants of demand are factors that shift the demand curve, changing the quantity demanded at each price. Meanwhile, determinants of supply is determinants of supply are factors that shift the supply curve, changing the quantity supplied at each price. Here is how they compare side by side.
Determinants of demand are factors that shift the demand curve, changing the quantity demanded at each price.
The main determinants of demand are consumer income, preferences, the prices of related goods, and expectations. When these factors change, the demand curve shifts to the right or left. For example, if consumer income rises, demand will shift to the right, indicating an increase in demand at each price level.
Determinants of supply are factors that shift the supply curve, changing the quantity supplied at each price.
The main determinants of supply are technology, input costs, government policies, and expectations. When these factors change, the supply curve shifts to the right or left. For example, if a new technology makes production more efficient, supply will shift to the right, indicating an increase in supply at each price level.
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