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

how to calculate the volume of exports? or what is the definition?

Explain about the specification of economics environments. Specification of Economic Environments: The primary step for studying an economic issue is to identify the econom

the sources of market failure

In a competitive market, the market demand is Qd = 150 - 5P and the market supply is Qs = 5P - 10. As a result of a price ceiling imposed at $14, the new consumer surplus and produ

Tariff: A tariff is a tax imposed on the purchase of imports. It is generally imposed in order to stimulate more domestic production of the product in question (rather than meeting

what are the factors influencing supply

What is the purpose of the IMF and why might the IMF be called the “lender of last resort”? Discuss how three of the tools they use for establishing economic stability in a country

How to solve questions of endowments?

Q. What do you meant by Real GDP? Real GDP:Value of total gross domestic product (which is, all the services and goods produced for money in the economy) adjusted for effects o