0
The more people there are the more they will want resources like water, electricity and roads. They will want more things from the shops. they will consume more food.
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
What is a demand curve and how it is different from demand function?
The demand curve demonstrates what happens when a product is demanded by customers. A demand function refers to an event that can affect the demand curve.
What condition must exist to make a demand curve accurate?
The condition is that the demand curve can only be accurate as long as there are no changes other than price that could affect the consumer's decision. In other words, a demand curve is accurate only as long as the ceteris paribus assumption is true. - You're WelCUM
How would a rise in the business investment affect the aggregate demand curve?
The aggregate demand curve shifts to the right
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.
Is the price elasticity constant along the demand curve?
Price elasticity of demand is equal to the instantaneous slope of the demand curve, or the slope of the tangent line at any point on the demand curve. So if the demand curve is represented by a straight downward sloping line, then yes, price elasticity of demand is equal to the slope of the demand curve. Otherwise, the slope at any point on the curve is changing, and you can find the it by taking the derivative of the demand curve function, which will find the Price elasticity of demand at any single point. Thus, the Price Elasticity of Demand changes at different points on the demand curve.
What is a demand curve and how it is different from demand function?
The demand curve demonstrates what happens when a product is demanded by customers. A demand function refers to an event that can affect the demand curve.
How does an increase in population affect the demand curve?
The higher the population, the more the 'wants' coming from the consumer side. This in result drives and shifts the demand curve rightward, where now on every single price level corresponds a higher number of quantity demanded. Note that population is not a price factor so that's the reason for the curve shifting and not a movement along the curve itself.
How would a rise in business affect the aggregate demand curve?
The aggregate demand curve shifts to the right
What condition must exist to a demand curve accurate?
The condition is that the demand curve can only be accurate as long as there are no changes other than price that could affect the consumer's decision. In other words, a demand curve is accurate only as long as the ceteris paribus assumption is true. - You're WelCUM
What condition must exist to make a demand curve accurate?
The condition is that the demand curve can only be accurate as long as there are no changes other than price that could affect the consumer's decision. In other words, a demand curve is accurate only as long as the ceteris paribus assumption is true. - You're WelCUM
How would a rise in the business investment affect the aggregate demand curve?
The aggregate demand curve shifts to the right
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.
What condition must exist to make a curve accurate?
The condition is that the demand curve can only be accurate as long as there are no changes other than price that could affect the consumer's decision. In other words, a demand curve is accurate only as long as the ceteris paribus assumption is true. - You're WelCUM
Is the price elasticity constant along the demand curve?
Price elasticity of demand is equal to the instantaneous slope of the demand curve, or the slope of the tangent line at any point on the demand curve. So if the demand curve is represented by a straight downward sloping line, then yes, price elasticity of demand is equal to the slope of the demand curve. Otherwise, the slope at any point on the curve is changing, and you can find the it by taking the derivative of the demand curve function, which will find the Price elasticity of demand at any single point. Thus, the Price Elasticity of Demand changes at different points on the demand curve.
A demand curve is an accurate tool for predicting the decisions of consumers as long as what condition exists?
haha
What causes abnormal demand curve?
Prices falling can cause abnormal demand curve. Any kind of changes to the price, production, etc. can also cause abnormal curves in demand.
Will the following changes affect the market price of wheat flour?
Wheat is virtually a perfectly competitive market. Therefore, its demand curve is horizontal. The only thing that could change the market price of wheat flour is a shift in the demand curve, e.g. a shift in consumer tastes.
