The necessity factor.
There are many different factors which can cause changes in supply and demand
Economic factors that lead to a new supply curve
Non-economic factors that lead to a new supply curve
Factors that lead to a new demand curve
The law of demand states that there an inverse relation between change in price of good and the consequent change in demand for bad goods, assuming no change in all other factors influencing demand for that good.
price elasticity of demand is the degree of responsiveness of demand where by change in price of a commodity bring proportionate change in quantity demanded.
The change in price can affect the demand for that product. If the price increases people will look for cheaper substitutes.
Consumer income Consumer taste Substitutes Compliments Change in expectation Number of consumer
For a given increase in supply the slope of both demand curve and supply curve affect the change in equilibrium quantity Is this statement true or false Explain with diagrams?
The law of demand states that there an inverse relation between change in price of good and the consequent change in demand for bad goods, assuming no change in all other factors influencing demand for that good.
price elasticity of demand is the degree of responsiveness of demand where by change in price of a commodity bring proportionate change in quantity demanded.
The change in price can affect the demand for that product. If the price increases people will look for cheaper substitutes.
Consumer income Consumer taste Substitutes Compliments Change in expectation Number of consumer
For a given increase in supply the slope of both demand curve and supply curve affect the change in equilibrium quantity Is this statement true or false Explain with diagrams?
The demand curve is drawn with price on the vertical axis and quantity demanded on the horizontal axis. Mathematically, the slope of a curve is represented by rise over run, or the change in the variable on the vertical axis divided by the change in the variable on the horizontal axis. Therefore, the slope of the demand curve represents change in price divided by change in quantity. Elasticity, on the other hand, aims to quantify the responsiveness of demand and supply to changes in price, income, or other determinants of demand.
Negative demand nonexistent demand latent demand declining demand Irregular demand full demand overfull demand unwholesome demand
demand
a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve
Explain the managerial uses of demand distinction
A change in supply means that the supply curve has shifted. With a stable demand, this will result in a change in the quantity supplied but also a change in price. A change in only quantity supplied without a change in supply would require a horizontal supply curve. Alternatively a change in quantity supplied and price may occur if there is a shift of the demand curve.
It could mean quite a few things. There is Income Elasticity of Demand, Price Elasticity of Demand. etc. Price Elasticity of Demand is the most popular, and is what people generally are referring to when they make incomplete statements like this. Price elasticity of demand, according to my understanding is the percentage change in demand due to a percentage change in price (or the prefix to the "elasticity of demand" statement). Caution must be taken however in determining this percentage change as the base value in the computation may, and usually is the average price of the good prior to the change, and not just the last price before the change. Ask your examiner what the requirements are, before you answer the question.