Factors shifting demand curve, Microeconomics

Assignment Help:

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.


Related Discussions:- Factors shifting demand curve

Secondhand smoke globally kills more than 600, Secondhand smoke globally ki...

Secondhand smoke globally kills more than 600,000 people each year, accounting for 1 percent of all deaths worldwide, according to a new study. . . . Researchers estimated th

Theory of perfect competition, Perfect competition has the following charac...

Perfect competition has the following characteristics: 1. Large number of firms - There are a large number of firms in the market. Due to this each firm produces a very small fr

Incomes rise, Normal 0 false false false EN-IN X-NON...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Perfect market, For the pizza seller whose marginal, average variable, and ...

For the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit-maximizing level of output and how much profit

What do you meant by derivatives, Q. What do you meant by Derivatives? ...

Q. What do you meant by Derivatives? Derivatives: A derivative is a financial asset whose resale value depends on the value of other financial assets at different points in tim

Explain about the money metric utility functions, Explain about the money m...

Explain about the money metric utility functions. The Money Metric Utility Functions: It is a nice construction including the expenditure function which comes up into a vari

Graded discussion board, The Case: In Pakistan, sugarcane, wheat, rice and ...

The Case: In Pakistan, sugarcane, wheat, rice and cotton accounted for 90% of the value added in crops and 6% of GDP in the last fiscal year but the average yield of these crops is

Economic Question , 4) The prevention of major swings in economic activity ...

4) The prevention of major swings in economic activity can be handled most easily by the A. household sector B. business sector C. financial sector

Macroeconomics, The Wealth of Nations of Modern Economies When the federal ...

The Wealth of Nations of Modern Economies When the federal government uses expenditures to stimulate the economy, it changes not only the present but the future as well. Question

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd