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Yes, an increase or decrease in income will cause a shift in the demand curve right or left depending on if the good is inferior, normal, or superior
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Is utility constant along a demand curve?
utility is not constant along the demand curve
Is price elasticity constant along demand curves?
explain why the price elasticity of demand varies along a demand curve, even if the demand curve is linear.
What is difference between slope and the calculation of elasticity for a linear demand curve?
Along a linear demand curve elasticity varies from point to point of the demand curve with respect to different price, but slope is constant
Movement along a demand curve?
explain graphically the movement along the demand curve
What is the difference in a movement along the demand curve and a shift in the total curve?
Distinguish between the movement along the demand curve and shift in demand curve with the assistance of suitable graphs and explanations?
Is utility constant along a demand curve?
utility is not constant along the demand curve
Is price elasticity constant along demand curves?
explain why the price elasticity of demand varies along a demand curve, even if the demand curve is linear.
What is difference between slope and the calculation of elasticity for a linear demand curve?
Along a linear demand curve elasticity varies from point to point of the demand curve with respect to different price, but slope is constant
Movement along a demand curve?
explain graphically the movement along the demand curve
What is the difference in a movement along the demand curve and a shift in the total curve?
Distinguish between the movement along the demand curve and shift in demand curve with the assistance of suitable graphs and explanations?
What happen to price when supply is constant and demand increaes?
prices will fall if demand decreases and the supply is constant. the supply curve will be vertical and demand curve will be downward sloping.
Does the change in consumer tastes lead to a movement along the demand curve or a shift in the demand curve?
A change in consumer's tastes leads to a shift in the demand curve. A change in price leads to a movement along the demand curve.
Does a change in consumers' tastes lead to a movement along the demand curve or a shift in the demand curve?
A change in consumer's tastes leads to a shift in the demand curve. A change in price leads to a movement along the demand curve.
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 the derivation of an individual demand curve?
income
What is the income consumption curve?
Income Consumption curve (icc) is a curve which determine the consumption of a consumer base on in his/her income When Income is High, Spending Capacity increases, higher the spending capacity - more the demand. Thus converse to the original demand theory which says, PRICE determines Demand, ICC theory says, INCOME of a PERSON determines the Demand for a Product
Distinguish between a movement along a given demand curve and a change in demandprovide an example for each?
The change in the demand of a commodity due to change in its price leads to moving the demand curve upward or downward depending upon the change in price. When the price rises, the demand falls. And when the price falls the demand for that commodity rises leading to movement in the demand curve. Shift in the demand curve is the result of the price remaining constant but the demand changing due to several other factors such as, change in fashion, population, etc. Hence at the same price when more is demanded the demand curve shifts to the right. and at the same price when less commodity is demanded it results in the shift of the demand curve to the left.
