Supply and demand are powerful forces in a free market.In four to five sentences, explain some of the factors that cause shifts in supply and demand and what the effects of these shifts are.

Answer:

A supply shift occurs when the amount producers are willing to sell at each price changes, often because of production costs, technology, resource availability, or the number of sellers. A demand shift occurs when the amount consumers are willing to buy at each price changes. Demand can shift when income, tastes, the number of buyers, or the prices of related goods change. An increase in supply generally lowers the equilibrium price and raises the quantity sold. An increase in demand generally raises both the equilibrium price and quantity sold.