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What is the effect of a drought on the demand curve for umbrellas?
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What events would be most likely to permanently shift an individuals demand curve for umbrellas to the right?
The price of umbrellas decreases significantly as inexpensive umbrellas are imported from China.
What event would be most likely to permanently shift an individuals demand curve for umbrellas to the right?
The price of umbrellas decreases significantly as inexpensive umbrellas are imported from China.
Why demand curve is horizontally curve?
horigontal demand curve means perfectly elasticity..i.e ed=infinity.in this case price is fixed and what ever change in demand will not effect the price.it can be said that supply of good in not limited in this case..i.e why it not effect the price with change in demand.
Why is the ordinary demand curve flatter than a compensated demand curve if the good is a normal good but the reverse is the case if the good is inferior?
because the ordinary demand curve ignores the income effect of price changes.also since the compensated demand curve is less inelastic than an ordinary demand curve.
Demand curve of a giffen good?
A Giffen good is a good whose consumption increases as its price increases. (For a normal good, as the price increases, consumption decreases.) Thus, the demand curve will be upward instead of downward sloping.A giffen good has an upward sloping demand curve because it is exceptionally inferior. It has a strong negative income elasticity of demand such that when a price changes the income effect outweighs the substitution effect and this leads to perverse demand curve.
What events would be most likely to permanently shift an individuals demand curve for umbrellas to the right?
The price of umbrellas decreases significantly as inexpensive umbrellas are imported from China.
What event would most likely to permanently shift an individuals demand curve for umbrellas to the right?
The price of umbrellas decreases significantly as inexpensive umbrellas are imported from China.
What event would be most likely to permanently shift an individuals demand curve for umbrellas to the right?
The price of umbrellas decreases significantly as inexpensive umbrellas are imported from China.
You want the characteristics of perfect inelastic demand curve?
A verticle demand curve, where a change in price does not effect quantity.
Why demand curve is horizontally curve?
horigontal demand curve means perfectly elasticity..i.e ed=infinity.in this case price is fixed and what ever change in demand will not effect the price.it can be said that supply of good in not limited in this case..i.e why it not effect the price with change in demand.
Why is the ordinary demand curve flatter than a compensated demand curve if the good is a normal good but the reverse is the case if the good is inferior?
because the ordinary demand curve ignores the income effect of price changes.also since the compensated demand curve is less inelastic than an ordinary demand curve.
What effect does income have on demand?
An increase in income tends to shift the demand curve for a good or service:For a normal good, the curve will shift to the right, indicating an increase in the demand at the same price.For an inferior good, the curve will tend to shift to the left, indicating a decrease in demand at the same price.
Demand curve of a giffen good?
A Giffen good is a good whose consumption increases as its price increases. (For a normal good, as the price increases, consumption decreases.) Thus, the demand curve will be upward instead of downward sloping.A giffen good has an upward sloping demand curve because it is exceptionally inferior. It has a strong negative income elasticity of demand such that when a price changes the income effect outweighs the substitution effect and this leads to perverse demand curve.
Explain movements along the aggregate demand curve and shifts of the aggregate demand curve?
Movements along the aggregate demand curve are caused by changes in price level - real wealth effect, interest rate effect and open economy effect. If some non-price level determinant causes total spending to increase/decrease then the curve will shift to the right/left - consumption, investment, government expenditure, net exports.
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 the primary difference between aggregate demand curve and individual demand curve?
aggregate demand curve is the total sum of all the individual demand curves while individual demand curve is the demand made by the single individual.
