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Unformatted text preview: .75 D D D 6 Q 5 Q 11 Q DETERMINANTS OF DEMAND 1. Price of the product = A change here results in a change in quality demand 2. Consumers income or wealth 3. The price of other goods and services A change here results in a change in demand 4. Expectations about the future 5. Tasks or fashions 6. # of buyers in the market A change in quantity demanded is represented by a movement along the curve A change in demand causes the entire Demand curve to shift PRICE OF PRODUCT P If price falls, quantity demanded increases P1 A If price goes up, quantity demanded decreases P2 D Q1 Q2 Q CONSUMERS INCOME ON WEALTH P P1 Suppose an increase in income D D1 Q1 Q2 Q the demand shifts out if income increases...
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This note was uploaded on 03/20/2008 for the course EC 201 taught by Professor Xasdf during the Fall '08 term at N.C. State.
- Fall '08