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Unformatted text preview: r when credit is
easy to obtain, demand might increase now. For
example, a salesperson gets the news that she will
receive a big bonus at the end of the year, so she goes
into debt and buys a new car right now.
Population Demand also depends on the size and the age structure of the population. The larger the population, the greater is the demand for all goods and
services; the smaller the population, the smaller is the
demand for all goods and services.
For example, the demand for parking spaces or
movies or just about anything that you can imagine
is much greater in New York City (population 7.5
million) than it is in Boise, Idaho (population
Also, the larger the proportion of the population
in a given age group, the greater is the demand for
the goods and services used by that age group.
For example, during the 1990s, a decrease in the
college-age population decreased the demand for college places. During those same years, the number of
Americans aged 85 years and over increased by more
than 1 million. As a result, the demand for nursing
home services increased. *An energy bar is a normal good. Preferences Demand depends on preferences.
Preferences determine the value that people place on
each good and service. Preferences depend on such
things as the weather, information, and fashion. For
example, greater health and fitness awareness has
shifted preferences in favor of energy bars, so the
demand for energy bars has increased.
Table 3.1 summarizes the influences on demand
and the direction of those influences. A Change in the Quantity Demanded
Versus a Change in Demand
Changes in the influences on buyers’ plans bring
either a change in the quantity demanded or a
change in demand. Equivalently, they bring either a
movement along the demand curve or a shift of the
demand curve. The distinction between a change in
the quantity demanded and a change in demand is 9160335_CH03_p053-080.qxd 6/22/09 8:56 AM Page 59 Demand the same as that between a movement along the
demand curve and a shift of the demand curve.
A point on the d...
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