# 3.7 Summary

Demand Shock |
Increase in Demand, Shifts curve to the Right |
Decrease in Demand, Shifts curve to the Left |
---|---|---|

Price of a Substitute | Increases | Decreases |

Price of a complement | Decreases | Increases |

Buyers’ Expectations about Future Prices | Increases (normal good) | Decreases (normal good) |

Preferences | Increases | Decreases |

Demographic Characteristics (Population) | Increases | Decreases |

Buyers’ Expectations about Future Prices | Increases | Decreases |

The Supply shocks are summarized in the table below:

Supply Shock | Increase in Supply, Shifts curve to the Right | Decrease in Supply, Shifts curve to the Left |
---|---|---|

Price of factors of production | Decreases | Increases |

Price of a Substitute | Decreases | Increases |

Sellers’ Expectations about Future Prices | Decreases | Increases |

Number of Producers | Increases | Decreases |

## Reference

Published by Statista Research Department, & 4, F. (2022, February 4). *Retail prices gasoline Canada 2021*. Statista. https://www.statista.com/statistics/444194/average-retail-price-for-regular-unleaded-gasoline-in-canada/

- The best way to learn these shifts is not to memorize them, but to practice shifts on the diagram to view their effects. ↵