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

Price gouging, In John Stossel's article, "In Praise of Price Gouging", Sto...

In John Stossel's article, "In Praise of Price Gouging", Stossel argues that a law banning price gouging would result in a two-block line for gasoline after Superstorm Sandy. a.

Health and life expectancy, Health and Life Expectancy: In addition t...

Health and Life Expectancy: In addition to struggling on low income, many people in the developing nations fight a constant battle against malnutrition, disease and ill healt

What is high-powered money, What is "high-powered money"?  The "high-po...

What is "high-powered money"?  The "high-powered money" is the similar as monetary base, which is defined, at the minimum, as the sum of the currency in circulation (banknotes

Explain why despite decreases in marginal cost, Problem 1: How can a ma...

Problem 1: How can a manager of a supermarket maximise total revenue using various concepts of elasticity of demand? Use examples to illustrate. Problem 2: What are the

Subsitution and income effect, subsitution effect dominate tha income effec...

subsitution effect dominate tha income effect in which good case?

Gross domestic product and growth rates, Gross Domestic Product and Growth ...

Gross Domestic Product and Growth Rates: The rate of growth of the secondary and tertiary sectors has been more than double that of the primary sector, with the secondary sect

Product differentiation, Question: Product differentiation and entry/exit ...

Question: Product differentiation and entry/exit Two differentiated goods, apples and oranges, are located at the two extremes of a linear product space (a segment of length 1)

Demand, elasticity of demand

elasticity of demand

Demand and supply, how to draw a table of the demand and supply scdule

how to draw a table of the demand and supply scdule

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