The demand curve, Microeconomics

The Demand Curve

- The demand curve exhibits how much of a good consumers are ready to buy as the price per unit changes keeping non-price factors constant.

- This price-quantity relationship can be exhibited by the equation: 

2310_demand curve.png

1363_demand curve1.png

Non-price Determining Variables of Demand 

- Consumer Tastes

- Income

- Price of Associated Goods



?Income enhances

- At P1, manufacture Q2


- At P2, manufacture Q1


- Demand Curve moves right


- More purchased at any price on D' than on D

688_change in demand.png

Demand - A Review


- Demand is find out by non-price demand-determining variables, like, price of related goods, tastes, and income.


- Changes in demand are given by shifting the complete demand curve.


- Changes in quantity demanded are given by movements along with the demand curve.

Posted Date: 7/24/2012 7:45:18 AM | Location : United States

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