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Factors Shifting Demand Curve:
Factors Changing
Demand
Effect on
Direction of Shift in Demand Curve
Effect on Equilibrium Price
Effect on Equilibrium Quantity
Increase in income
(normal good)
Increase
Rightward
Decrease in
income(normal good)
Decrease
Leftward
(inferior good)
income(inferior good)
Increase in price of
Substitute
Decrease in price of
substitute
complement
Increase in taste and
preference for good
Decrease in taste and
Increase in number of
consumers
Decrease in number of
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.
DIMENSIONS OF UNEMPLOYMENT: What is the level of unemployment in the country? According to the 1999-2000 Survey of NSSO, the number of unemployed has increased from 20.13 mill
Risk Neutral - A person is a risk neutral if they show no preference between certain, and an uncertain income with the same expected value.
describe returns to scale and give examples of each.
Q. Define Economies of Scale? Economies of Scale: Most economic production requires producing firm or organization to make an initial investment (in real capital, in design and
what is the relation ship between mp,tp,ap
The Short Run versus long Run - Short-run: Period of time in which the quantities of one or more production factors cannot be changed. These inputs are called as fi
If there is an industry and some of the companies get shut down, how would you graph the short run and long run effects
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Why firm charges different prices to different consumer? Every firm needs to maximize its profit. When goods are sold to different customers, each customer negotiate price of
1. State of the art machines at the advanced Yamaha musical instrument plant tune the exact sound of high caliber musical instruments (vs a certain touch, and perhaps a degree of v
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