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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 614 |
Essay's paper body
More producers in the market will shift the supply curve to the right causing prices to fall. In this example the market forces acting on the poultry industry are the number of producers, the higher feed price and the price of substitute goods such as beef and pork.
In summary, price is not the only determining factor of demand and supply in a market...
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There are other market forces including consumer taste and preference, price of complimentary goods, price of resources, prices of substitute goods, number of consumers and producers in the market, and etc that will affect the supply and demand. These influential forces can change in a market. As in the automobile market, consumers' taste and preference raised the demand for SUV in 2000, but as gas prices rose, the demand for SUV dropped off...
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