Question

Today we are faced with a fast-moving world. New products are being introduced to the marketplace at a rapid pace, and consumer trends seem to be changing faster. What are the most important factors that have shifted the demand for and supply of goods? Feel free to pick one or more goods to discuss in your response and use economic reasoning to support your response.

Answer 1

factors that are affecting the supply of different products include a very significant factor which is the technology upgradation. Due to this the resources are more productive and this has increased the supply for most goods and services. Due to this reason prices have declined for several goods. However for agricultural products poor weather conditions have often resulted in decreasing the supply due to which many edible goods have experienced high input cost and this decreases is there supply

For consumers there has been a variety of goods and services due to which they can easily choose. This indicates that the number of substitutes has increased and the demand for those goods and services with new substitutes available experience a decrease. the demand curve shifts to the left for another reason which is a decrease in the income of consumer due to to bad economic conditions.