0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What is the difference between change in demand curve and shift in demand curve?
Change in demand curve is caused by the change in the price of the product. This is the change that occurs ON THE DEMAND CURVE. The price changes changes the QUANTITY DEMANDED, not the demand curve itself. Shift in demand curve is caused by NON PRICE DEMAND DETERMINANTS. Basically it shifts the ENTIRE curve (right (increase) or left (decrease)). Change in income, change in number of consumers, taste and preferences, price of related goods, and future expectations all cause shifts in demand curve. For example, an increase in the number of consumers would shift the demand to the right because demand would increase.
Explain the six determinants that will change shift the demand curve?
Consumer income Consumer taste Substitutes Compliments Change in expectation Number of consumer
How is demand and quantity demanded different?
A change in quantity demanded refers to the response of consumers to changes in the PRICES of commodities, ceteris paribus.>> Involves a movement along the demand curve A change in demand refers to an increase or decrease in demand brought about by a change in the conditions of non-price determinants.>> Involves a shift in the demand curve (to the left or right)
Which factor is not held constant in a demand schedule?
the taste of consumers
Discuss the assumption of law of demand?
There is an inverse relationship between quantity demanded and its price. The people know that when price of a commodity goes up its demand comes down. When there is decrease in price the demand for a commodity goes up. There is inverse relation between price and demand . The law refers to the direction in which quantity demanded changes due to change in price. Assumptions of the law There is no change in income of consumers. There is no change in the price of product. There is no change in quality of product. There is no substitute of the commodity. The prices of related commodities remain the same. There is no change in customs. There is no change in taste and preference of consumers. The size of population remains the same. The climate and weather conditions are same. The tax rates and other fiscal measures remain the same.
What is the difference between change in demand curve and shift in demand curve?
Change in demand curve is caused by the change in the price of the product. This is the change that occurs ON THE DEMAND CURVE. The price changes changes the QUANTITY DEMANDED, not the demand curve itself. Shift in demand curve is caused by NON PRICE DEMAND DETERMINANTS. Basically it shifts the ENTIRE curve (right (increase) or left (decrease)). Change in income, change in number of consumers, taste and preferences, price of related goods, and future expectations all cause shifts in demand curve. For example, an increase in the number of consumers would shift the demand to the right because demand would increase.
How do consumers taste affect demand?
If people's taste shift away from good, demand curve will shift left, if people prefer a good more, demand shifts right.
Explain the six determinants that will change shift the demand curve?
Consumer income Consumer taste Substitutes Compliments Change in expectation Number of consumer
How is demand and quantity demanded different?
A change in quantity demanded refers to the response of consumers to changes in the PRICES of commodities, ceteris paribus.>> Involves a movement along the demand curve A change in demand refers to an increase or decrease in demand brought about by a change in the conditions of non-price determinants.>> Involves a shift in the demand curve (to the left or right)
Which factor is not held constant in a demand schedule?
the taste of consumers
Is the price of a good the strongest determinant of its demand?
No - look at the example of motor fuel. No. The price of a good is not a determinant of demand at all. The price of a good determines the quantity demanded, not the demand. "The demand" is a curve showing the quantity demanded at each price. If price changes, you simply move up or down the line. The "Demand" does not change, because you are still on the same line. The strongest determinant of demand is probably the consumer(s)' taste and preferences.
Discuss the assumption of law of demand?
There is an inverse relationship between quantity demanded and its price. The people know that when price of a commodity goes up its demand comes down. When there is decrease in price the demand for a commodity goes up. There is inverse relation between price and demand . The law refers to the direction in which quantity demanded changes due to change in price. Assumptions of the law There is no change in income of consumers. There is no change in the price of product. There is no change in quality of product. There is no substitute of the commodity. The prices of related commodities remain the same. There is no change in customs. There is no change in taste and preference of consumers. The size of population remains the same. The climate and weather conditions are same. The tax rates and other fiscal measures remain the same.
What is difference between change in supply and change in quantity supplied?
a change in supply is the shift in supply curve due to change in price of other commodities and other factors like taste,weather,income e.t.c while a change in quantity supply is the change in price of the commodity itself that affect the quantity supply,here the supply curve remain constant but there will be a movement along the supply curve.
Shift in demand?
Laws of demand and supply is based on the assumption that other things (given market, fixed set of customers whose income are not changed whose taste remains same and the price of substitutes or complementary goods also remains unchanged) will remain same and if there is any change in any such factors it will cause shift in demand and supply curve and there will be new equilibrium price and equilibrium quantity.
What does a shift in the demand curve mean?
Shift in demand curve is caused by other determinants of demand rather than price. It may shift inward or outward, that depends upon how the particular determinant affects the demand, e.g: taste and preference.
What is a factor that has been found to change consumers tastes and preferences?
Television is the main factor that can change the consumer taste and preferences. People are influenced by the TV commercials.
Factors influencing demand?
-Price of good or service (P)-Incomes of consumers (M)-Prices of related goods & services (PR)-Taste patterns of the consumer (T)-Expected future price of product (Pe)-Number of consumers in market (N)
