SUPPLY AND DEMAND 2
Supply and Demand
The drivers or the determinants of the demand of the orange juice in the market include the
number of the factors. First, the consumer’s taste and preferences which are centered on what they
like and what they do not desire to purchase in the market (Azevedo & Leshno, 2016). Secondly,
the level of income of the consumers directly influences the demand curve which determines their
ability to make a substantial purchase. Thirdly, the prices of related goods and the customers’
anticipation with respect to what they are willing to buy at a specific time in a particular selling
center influences the demand curve (Azevedo & Leshno, 2016). Lastly, the number of the
consumer anticipating to purchase the products is also the most influential drivers of the demand
in a free market. However, when any of the above drivers escalates in amount, eventually it results
to the shift of the demand curve to the right, which differs sharply from what is observed from the
movement along the curve triggered by both price and quantity changes. Conversely, when any of
these determinants decreases in amount, the demand curve shift to the left.
The drivers of supply are not entirely embedded in the consumer just like the ways they are
found in the demand curve. These determinants include resources, technology, subsidies, taxes,
the seller’s anticipations and the price of other products in respect to some sellers, market price,
and the competitive edge (Azevedo & Leshno, 2016). However, the impacts of these drivers are
exhibited when there is an increase in the supply of oranges, the supply curve shift to the right
which is accompanied by a decrease in the equilibrium price and quantity proportionally.
In the existence of the free market, where the prices are not subject to the control of the
government, the market prices are exclusively determined by the invisible hand of the market and
