Econ 104 - 5 - Demand Curve Shifters The demand curve shows...

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Demand Curve Shifters The demand curve shows how price affects quantity demanded, other things being equal . These “other things” are non -price determinants of demand ( i.e., things that determine buyers’ demand for a good, other than the good’s price). Changes in them shift the D curve…
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Demand Curve Shifters: Number of Buyers An increase in the number of buyers causes an increase in quantity demanded at each price, which shifts the demand curve to the right.
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Demand Curve Shifters: Income Demand for a normal good is positively related to income. An increase in income causes increase in quantity demanded at each price, shifting the D curve to the right. (Demand for an inferior good is negatively related to income. An increase in income shifts D curves for inferior goods to the left.)
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Demand Curve Shifters: Prices of Related Goods Two goods are substitutes if an increase in the price of one causes an increase in demand for the other. Example: pizza and hamburgers.
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This note was uploaded on 11/29/2011 for the course ECON 104 taught by Professor Staff during the Fall '10 term at Pennsylvania State University, University Park.

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Econ 104 - 5 - Demand Curve Shifters The demand curve shows...

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