Shifts in demand curve, Managerial Economics

Shifts in demand curve

Shifts in the demand curve are brought about by the changes in factors like taste, prices of other related commodities, income etc other than the price of the commodity. The change in the demand for the commodity is indicated by a shift to the right or left of the original demand curve.

In the figure below, DD represents the initial demand before the changes. When the demand increases, the demand curve shifts to the right from position DD to positions D2D2. The quantity demanded at price P1 increases from q1 to q'1. Conversely, a fall in demand is indicated by a shift to the left of the demand curve from D2D2 to DD. The quantity demanded at price P1 decreases from q1 to q1

342_shift in demand curve.png

Posted Date: 11/27/2012 5:06:39 AM | Location : United States







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

Write discussion on Shifts in demand curve
Your posts are moderated
Related Questions
#queCase Study Labor standards Geeta & Company has experienced increased production costs. The primary area of concern identified by management is direct labor. The company is co

elasticity concepts occupies a central place in policy formulation explain in details

WAGE DETERMINATION, POLICY AND THEORIES Wages and salaries are rewards to labour as a factor of production of goods and services.  In ordinary speech a distinction is frequent

Dan and Ann are chemical engineers working for a biotech company. Each of them would like to be promoted to a managerial position, but only one of them can get the job. Their super

Compare the price elasticity at two parallel demand curves at a given price. This has been explained in Fig above where two demand curves AB and CD are given that are parallel to e

ROLE OF SCARCITY IN MANAGEMENT DECISION MAKING

Income Elasticity of different consumer goods Commodities Coefficient of income elasticity Impact on expenditure Necessities

Suppose you are an efficient expert hired by a manufacturing firm that uses two inputs, labor (L) and capital (K). The firm produces and sells a given output. You have the followin

Prediction markets:   These are speculative markets fashioned with the intention of making predictions. Assets which are produced possess an ultimate cash worth bound to a specific

is Indian companies running a risk by not giving attention to cost cutting?