Answer:
Non-price factors that can affect shifts in demand include changes in consumer tastes and preferences, changes in income levels, changes in population, and changes in consumer expectations. For example, if a new technology is introduced that makes a particular product more convenient or efficient, it may increase the demand for that product. Similarly, if there is an increase in income levels, consumers may be more willing to purchase luxury goods, thereby increasing the demand for those goods.
On the supply side, non-price factors that can affect shifts include changes in production costs, changes in technology, and changes in government regulations. For example, if a new regulation is introduced that makes it more expensive for companies to produce a particular product, it may decrease the supply of that product. Similarly, if a new technology is introduced that makes production more efficient, it may increase the supply of that product.
In the short run, shifts in demand and supply can lead to changes in prices and quantities, but in the long run, prices tend to adjust to the level that clears the market. For example, if there is an increase in demand for a particular product, prices may initially rise, but over time, producers may increase supply to meet the higher demand, which could eventually lead to lower prices. Similarly, if there is a decrease in supply for a particular product, prices may initially rise, but over time, producers may find ways to increase supply, which could eventually lead to lower prices.