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Factors affecting demand include the good's own price, the price of related goods, personal disposable income, consumer tastes and preferences, consumer expectations about future prices and income, and the nature of the good.
All of these factors work together to determine the buyer's demand curve.
The market demand curve is the horizontal sum of individual buyers' demand curves. Aggregation introduces three additional non-price determinants of demand: the number of consumers; the distribution of tastes among the consumers; and the distribution of incomes among consumers of different tastes.
Factors that affect individual demand can also affect market demand, but net effects must also be considered.
Wiki User
∙ 11y ago
Wiki User
∙ 13y ago1.Quality
2.Distance of market from locality
3.Markets offering less Price/Rates
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When the price of a good will cause total revenue to fall if price elasticity of demand is elastic or inelastic?
when price changes it is called inelastic demand and when quantity of demand change that is called elastic of demand.
When demand is elastic a decrease in price causes quantity demanded to?
These factors mean that quantity will increase at a more than proportionate amount to price.
Is the price and demand for junk food elastic or inelastic?
elastic
What is the Four determinants of price elasticity of demand?
perfectly elastic demand the quantity change by infinitely large amount proportion due to the small change in price, is called perfectly elastic demand. perfectly inelastic demand the quantity demand doesn't change at all due to the change in price is called perfectly inelastic demand. relatively elastic demand the quantity demand changes by a little more percentage than the change in price is called relatively elastic demand. relatively inelastic demand the percentage change in quantity demand is less than the percentage change change in its price is called relatively inelastic demand unitary elastic demand the percentage change in quantity demand is equal to the percentage change in price is called unitary elastic demand
When demand is perfectly elastic what happens to marginal revenue?
When Demand is perfectly elastic, Marginal Revenue is identical with price.
When the price of a good will cause total revenue to fall if price elasticity of demand is elastic or inelastic?
when price changes it is called inelastic demand and when quantity of demand change that is called elastic of demand.
When demand is elastic a decrease in price causes quantity demanded to?
These factors mean that quantity will increase at a more than proportionate amount to price.
When demand is elastic?
The demand is elastic when the price is low. So people will buy more good so that it's demand will become more elastic. Moreover ,the demand is elastic when there are some new inventions.
Is the price and demand for junk food elastic or inelastic?
elastic
What is the Four determinants of price elasticity of demand?
perfectly elastic demand the quantity change by infinitely large amount proportion due to the small change in price, is called perfectly elastic demand. perfectly inelastic demand the quantity demand doesn't change at all due to the change in price is called perfectly inelastic demand. relatively elastic demand the quantity demand changes by a little more percentage than the change in price is called relatively elastic demand. relatively inelastic demand the percentage change in quantity demand is less than the percentage change change in its price is called relatively inelastic demand unitary elastic demand the percentage change in quantity demand is equal to the percentage change in price is called unitary elastic demand
When demand is perfectly elastic what happens to marginal revenue?
When Demand is perfectly elastic, Marginal Revenue is identical with price.
What is Elastic demand?
Elastic demand means something increases or decreases as the price of an item goes down or up.
What are the types of price elasticity of demand?
there are five types.1).perfect elastic demand,2)perfect inelastic demand,3).relatively elastic demand,4).relatively inelastic demand4).unity elastic demand
What is The Total Revenue Rule?
if a price cut decreases total revenue, demand is elastic. if a price cut decreases total revenue, demand is inelastic. if a price cut leaves total revenue unchanged, demand is unit elastic.
Along a linear demand curve as the price rises demand becomes more?
elastic
When total revenue and price are inversely related demand is?
elastic
If demand is elastic and price is lowered total revenue will?
increase
