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Demand influences supply. When there is high demand for items, supply is lower, thus increasing the cost. When there is low demand, supply is high, thus decreasing costs.
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∙ 9y ago
Wiki User
∙ 11y ago- the prices of related goods-expected future prices
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What is needed to determine equilibrium price of a good or a service?
a supply curve and a demand curveA supply curve and a demand curve.
What happens to demand and demand curve when there is an increase in the factor?
If there is an increase in demand then a new demand curve appears to the right of the original, but if there is an increase in quantity demanded, then there will only be an increase in price and a new demand curve will not appear.
Relationship between Marginal revenue and Demand curve?
marginal revenue always lies behind the demand curve,and when demand increases marginal revenue also increases.demand curve is used to determine price of a commodity.
What factor will cause the demand curve for labor to shift to the right?
It is something
What are the three characteristics of a supply curve?
The three characteristics of a supply curve are the slope, shift, and the curve's position. Together they help determine supply and demand trends.
What is needed to determine equilibrium price of a good or a service?
a supply curve and a demand curveA supply curve and a demand curve.
What is needed to determine the equilibrium price of a good or services?
a supply curve and a demand curveA supply curve and a demand curve.
What happens to demand and demand curve when there is an increase in the factor?
If there is an increase in demand then a new demand curve appears to the right of the original, but if there is an increase in quantity demanded, then there will only be an increase in price and a new demand curve will not appear.
Relationship between Marginal revenue and Demand curve?
marginal revenue always lies behind the demand curve,and when demand increases marginal revenue also increases.demand curve is used to determine price of a commodity.
What factor will cause the demand curve for labor to shift to the right?
It is something
What are the three characteristics of a supply curve?
The three characteristics of a supply curve are the slope, shift, and the curve's position. Together they help determine supply and demand trends.
In economics what is the meaning of the term 'demand curve'?
Graphical representation of law of demand that is change in quantity demanded due to change in price keeping other factors constant is demand curve. It is downward sloping as there is inverse relation between price and quantity demanded.
True or False the steeper the demand curve the less elastic the demand curve?
It is false that the steeper the demand curve the less elastic the demand curve. The steeper line is used in economics to indicate the inelastic demand curve.
Is a demand curve created from a demand schedule?
The data on a demand schedule can be plotted on a demand curve. Often, a demand schedule will be created before the creation of a demand curve, so as to allow for greater accuracy when plotting the demand curve.
What is the difference between fall in demand and contraction in demand?
A contraction in demand is caused by an increase in Price and illustrated by a movement up the demand curve. A decrease in demand is caused by any non-price factor (e.g. advertising, tastes and preferences and price of substitute goods) and is illustrated by an inward shift in the demand curve.
Given the demand curve that is a rectangular hyperbola with a demand function of the form Q equals 1 over P Show that the point of elestacity will be unitary throughout the demand curve?
Assuming that the given demand curve is a rectangular hyperbola, total expenditure (i.e. rectangular area or Q*P) is the same for each point on the length of the curve. Next we use the demand function to determine the total expenditure value as Q=1/P=>Q*P=1, and we have consequently a demand curve of unitary elasticity.
Is an increase in demand represented by a movement up the demand curve?
An increase in demand is represented by a shift of the demand curve to the right; not a movement along the demand curve. An increase in the quantity demanded would be a movement down the demand curve.
