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RESEARCH PAPER: SUPPLY AND DEMAND SHIFTERS
Research Paper: Supply and Demand Shifters
James R. Bailey
School of Business, Liberty University
BUSI 620-B06: Global Economic Environment
Dr. Virgil Mensah-Dartey
October 9, 2021
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RESEARCH PAPER: SUPPLY AND DEMAND SHIFTERS
Research Paper: Supply and Demand
Perhaps one of the most pertinent topics in managerial economics is the principle of
supply and demand. The entire market works based on not only the supply that is available of a
particular product but also the consumer demand for it. The prices of goods come primarily from
this principle, and the slightest change in either could drastically change the price to either the
producer or the consumer. There are variables other than the price, known as shifters, that can
influence both supply and demand. The concept of supply and demand, along with the factors
that influence both, are important to understand and show how the economies of the consumer
market work.
Demand Shifters
The demand element of this principle refers to the want or need of a particular item from
a consumer standpoint. This demand can be heavily influenced by the price of the good, but the
price of the good could also be heavily dependent on the demand as well. There are variables that
affect the demand of an item and can drastically increase or decrease the price based on the
number of factors that are present in a particular situation. The price of goods can be dependent
on many factors, including the income of the consumer, the prices of related goods, advertising
and consumer tastes, population, and consumer expectations (Baye & Prince, 2021, p. 43).
Income
