Demand and Supply Part 2
Montāžas Teksta
- Demand and Supply Project Part 2
- Different scenarios can cause the demand and supply curve to shift to the right or the left. If there is an increase in demand, the demand curve will shift to the right. If there is an decrease in demand, the demand curve will shift to the left.
- Product
- Samsung Curved Computer Monitor: Different scenarios can cause the demand and supply curve to shift to the right or the left for this product.
- Supply: Technology
- A manufacturing error occurs that causes the lighting in some of the computer monitors to not work properly. Now, these computer monitors cannot be taken to stores to be sold on time. The stores cannot sell as many of the Samsung computer monitors now, because technology caused them to have a low supply. This means that the supply curve would to shift to the left.
- Supply: Taxes
- The government can place special taxes on certain items, which may cause the companies to produce less of these certain items. Let’s say that a tax is put on computer monitors that are curved, and this causes Samsung to choose to make less of these curved monitors, and make more of their other products. Because of the tax, there is now a lower supply of the curved computer monitors, causing the supply curve for this product to shift to the left.
- Supply: Resource Costs
- The price of some of the materials used in the monitor’s display go up. Now, Samsung cannot make as many monitors at the same price as before. They decide to create less monitors, therefore making the supply of this product to be a little less. This change in supply causes the supply curve to shift to the left.
- Supply: Quotas
- The government decides to place a quota on these computer monitors. They say that Samsung can only make 3/4 of the amount of monitors they made before. This would cause the supply curve to shift to the right because there is now a lower supply of the computer monitors.
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