Factors shifting demand curve, Microeconomics

Factors Shifting Demand Curve:

 

Factors Changing

Demand

Effect on

Demand

Direction of Shift in Demand Curve

Effect on Equilibrium Price

Effect on Equilibrium Quantity

Increase in income

(normal good)

Increase

Rightward

Increase

Increase

Decrease in

income(normal good)

Decrease

Leftward

Decrease

Decrease

Increase in income

(inferior good)

Decrease

Rightward

Decrease

Decrease

Decrease in

income(inferior good)

Increase

Rightward

Increase

Increase

Increase in price of

Substitute

Increase

Rightward

Increase

Increase

Decrease in price of

substitute

Decrease

Rightward

Decrease

Decrease

Increase in price of

complement

Decrease

Leftward

Decrease

Decrease

Decrease in price of

complement

Increase

Rightward

Increase

Increase

Increase in taste and

preference for good

Increase

Rightward

Increase

Increase

Decrease in taste and

preference for good

Decrease

Leftward

Decrease

Decrease

Increase in number of

consumers

Increase

Rightward

Increase

Increase

Decrease in number of

consumers

Decrease

Leftward

Decrease

Decrease

 

Market demand curve  is  the  graphic representation of  the  market demand which shows the quantities of the commodity to which the consumers are willing able to purchase during the period of time at various alternative prices/costs, while holding constant everything else which effects the demand. The market demand curve for the commodity is negatively sloped, indicating that more of the commodity is purchased at the lower price.

Posted Date: 7/19/2012 3:30:02 AM | Location : United States







Related Discussions:- Factors shifting demand curve, Assignment Help, Ask Question on Factors shifting demand curve, Get Answer, Expert's Help, Factors shifting demand curve Discussions

Write discussion on Factors shifting demand curve
Your posts are moderated
Related Questions
More details on mixed bundling

optimal contracts under symmetric information

International development association: Part of the challenge entails reorienting surveillance, the process through which the BW institutions policy advice is delivered, to mak

please can you explainn what "down 0.1 percentage point on the quarter means"?

Question 1: i) Elaborate on how CPI is used to calculate inflation and what are the limitations of such a measure? ii) Growth is always beneficial. Discuss iii) Explain

how do minimum units cost change with changes in fixed cost

Should the bank not have anyone to lend the demand deposit to (like that will ever happen) would the size of the money multiplier decrease? If so, why?

The demand curve for gasoline is P = 200 - 10Q.   a. Find the elasticity of demand for a quantity of 8.  Does this number imply that quantity demanded is sensitive to price chan

The following hypotheses are concerned with the general impact of FDI from Costa Rica trading partners on exports from the technology sector:  H1:   There is a positive signifi

Sally recently finished her full-time training and received certification as a nurse’s aid at the end of August. She sent out applications to prospective employers during the last