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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:
Non-price Determining Variables of Demand
- Consumer Tastes
- Income
- Price of Associated Goods
Substitutes
Complements
?Income enhances
- At P1, manufacture Q2
- At P2, manufacture Q1
- Demand Curve moves right
- More purchased at any price on D' than on D
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.
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