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Unformatted text preview: doesn't lose his new job, he will always have more money. That means that he can buy more of what he likes, and he will have a higher demand curve for all normal goods. Shifts in Demand Note that for any price level, Conan's demand is now higher than it was before the demand shift. This can also occur with a change in buyer preferences. If Conan suddenly decides that he wants to collect jazz CDs, and he now likes jazz CDs much more than he did before, his demand curve will shift outwards, reflecting his new appreciation of jazz, and his willingness to pay more for the same CDs, since they have become more valuable in his eyes. Shifts in demand curves are caused by changes in income (which make the goods seem more or less expensive) or changes in preferences (which make the goods seem more or less valuable)....
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This note was uploaded on 02/09/2012 for the course ECO ECO2013 taught by Professor Jominy during the Fall '08 term at Broward College.
- Fall '08