Changes in Demand

Changes in Demand - X decreases, the demand for the...

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CHANGES IN DEMAND In talking about the demand for a commodity, you should always specify the time and the place of the demand because demand changes across time (temporal change) and locations (spatial change) These changes in demand are due to the following factors 1. the price of the commodity. The effect of the price of the commodity is stated in the law of demand which states that "as price increases, consumers tend to buy less and as price decreases, consumers tend to buy more of the commodity 2. population. As population increases, the demand for a commodity increases also 3. Income As incoome increases the demand for a normal goood also increase 4. taste and preferences. Each culture or ethnic group have certain affinity to certain go 5. the price of related (substitute or complementary product. If the price of a substitute p
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Unformatted text preview: X decreases, the demand for the substiute product increases, causing the demand f product to increase. The changes in demand curve is sh own as follows. A shift to the right means an increa and shift to the left means a decrease in demand Quantity P1 P2 P3 100 95 115 75 200 90 110 70 300 85 105 65 400 80 100 60 500 75 95 55 600 70 90 50 700 65 85 45 800 60 80 40 900 55 75 35 1000 50 70 30 1100 45 65 25 1200 40 60 20 1300 35 55 15 P1 is the middle demand 1400 30 50 P2 is an increease in demand 60 80 100 120 140 Column C Column D Column E 1 2 3 4 5 6 7 8 9 10 11 12 13 20 40 Column E d across oods product for the main ase in demand, P3 is a decrease in demand 1 2 3 4 5 6 7 8 9 10 11 12 13 14 200 400 600 800 1000 1200 1400 1600 Column B Column C Column D Column E...
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This note was uploaded on 04/15/2010 for the course ECON 3020 taught by Professor Lucas during the Spring '10 term at Hawaii Pacific.

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Changes in Demand - X decreases, the demand for the...

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