Changes In Demand/ Supply

Question 1

Decrease in demand

Answer 1

Fall in consumer income
Fall in price of subsidies
Rise in price of compliments
Negative change in taste or fashion

Question 2

Increase in supply

Answer 2

Fall in raw material costs
Improvement in labour efficiency
A reduction in the rate of indirect tax
Positive technological advance

Question 3

Decrease in supply

Answer 3

Increase in raw material costs
Increase in labour costs
Increase in rate of indirect tax
Negative factors

Question 4

Increase in demand

Answer 4

An increase in consumer income
Rise in price of subsidies
Fall in price of compliments
Positive change in taste or fashion