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week 4

week 4

From the scenario for Katrina’s Candies, examine the key factors affecting the demand for and the supply of a good in general and Katrina’s Candies specifically.

Distinguish between a change in demand and a change in the quantity demanded (movement along the demand curve)

From the above, indicate the factors that are responsible for a shift in demand; and explain how the change is effected by these factors. Indicate the factors that are responsible for a shift in supply; and explain how the change is affected by these factors.

Income, taste and preferences of consumers, price of other goods (mainly substitutes), government actions and the amount of information available on the good or service are the factors likely to cause a shift in the demand curve.

Select a good or service in which you are interested. Use the Internet to locate information regarding the supply and demand of this good or service. Be prepared to discuss.

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