0
What else can I help you with?
Why does demand curve slope downward from left to right?
We have seen already that demand curves (price Demand) slope downwards from left to right. Since demand curve is only a geometrical representation of the law of demand with 'quantity' on the X axis, and 'price' on the Y axis, the shape of the demand curve has to be necessarily of one sloping downwards showing that more is demanded at a lower price. The question why does the demand curve slope downwards is an indirect way of asking why does the law of demand operate. What are the reasons behind the operation of law of demand? why do people demand more if price comes down? So it is better to discuss the reasons behind the law of demand or the economics of law of demand in order to understand the question under discussion.
How will technological advances affected the production possibilities curve?
Let's briefly explore each one of these and see how they shift the curve. Probably what you hear about most in economics is how changes in technology affect the curve. For example, let's say the country discovers a new technology, such as a new computer system that improves productivity. Anything that improves the productivity of workers is good. This causes output to increase, so the production possibilities curve shifts outward, or to the right. On the other hand, let's say a major war causes destruction of capital equipment in the country. This would cause output to decrease, so in this case, the production possibilities curve shifts inward, or to the left.
Why does the demand curve slope down and to the right?
The demand / supply graph is designed to have supply on the vertical axis (Y) and demand on the horizontal (X). Thus you will have a higher supply = lower demand, or lower supply = high demand.
Derivation of demand curve from price consumption curve?
From the question I believe you know what is price consumption curve, so I start from there. After maximising utility we find the optimal consumption bundle called the demand functions. These demand functions are functions of prices and income. A price consumption curve is the locus of points that connect the optimal demand functions as any one commodity price changes (ceteris paribus). Now if we remember, a demand curve is a downward sloping line in a Price X Quantity framework of a particular good. And it is clear that from the Price consumption curve that as prices increase we reduce the consumption of that commodity and substitute it with the other goods. In a partial equilibrium framework i.e. Price x Quantity framework everything else is held constant, therefore as price of say "Y" increases putting in the demand function we will get that its consumption falls, hence getting a downward sloping DD (demand Curve).
If the government increases unemployment benefits then the labor demand curve shifts leftward?
In this situation, the government has increased unemployment benefits. This means that workers are less interested in finding another job right away. Therefore, it is not the demand curve that would shift. Instead the labor supply curve would shift to the left because less unemployed people are willing to get a job.This principle shows why unemployment is higher in countries that offer more lenient unemployment benefits. For example, more countries in Europe have much more lenient unemployment benefits that the United States. That is why, normally, the United States has a lower unemployment rate.I say "normally" because of the present situation in the United States, where right now, unemployment is at 9.7%(on 3/7/2010). This is not the usual unemployment in the U.S. and is a result of the recession that began in 2008.
Why does demand curve slope downward from left to right?
We have seen already that demand curves (price Demand) slope downwards from left to right. Since demand curve is only a geometrical representation of the law of demand with 'quantity' on the X axis, and 'price' on the Y axis, the shape of the demand curve has to be necessarily of one sloping downwards showing that more is demanded at a lower price. The question why does the demand curve slope downwards is an indirect way of asking why does the law of demand operate. What are the reasons behind the operation of law of demand? why do people demand more if price comes down? So it is better to discuss the reasons behind the law of demand or the economics of law of demand in order to understand the question under discussion.
How will technological advances affected the production possibilities curve?
Let's briefly explore each one of these and see how they shift the curve. Probably what you hear about most in economics is how changes in technology affect the curve. For example, let's say the country discovers a new technology, such as a new computer system that improves productivity. Anything that improves the productivity of workers is good. This causes output to increase, so the production possibilities curve shifts outward, or to the right. On the other hand, let's say a major war causes destruction of capital equipment in the country. This would cause output to decrease, so in this case, the production possibilities curve shifts inward, or to the left.
Why does demand curve slope from left to right?
Demand curve is negatively slopedThe demand curve generally slopes downward from left to right. It has a negative slope because the two important variables price and quantity work in opposite direCtion. As the price of a commodity decreases, the quantity demanded increases over a specified period of time and vice versa, other things remaining constant. The fundamental reasons for demand curve to slope downward aFe as follows:(i) Law of diminishing marginal utility. The law of demand is based on the law of diminishing marginal utility. According to the cardinal utility approach, when a consumer purchases more units of a commodity, its marginal utility declines. The consumer, therefore, will purchase more units of that cOmmodity only if its price falls.Thus, a decrease in price- brings about an increase, in demand. The demand curve, therefore, is downward sloping.(ii) Income effect. Other things being equal, when the price of a commodity decreases, the real income or the purchasing power of the household increases. The consumer is now in a position to. purchase more commodities with the same income. The demand for a commodity thus increases not only from the existing buyers but also from the new buyers who were earlier unable to purchase at higher price. When at a lower price, there is a greater demand for a commodity by the households" the demand curve is bound to slope downward from left to right.(iii) Substitution effect. The demand curve slopes downward from left to right also because of the substitution effect. For instance, the price of meat falls and the prices of other substitutes say poultry and beef remain constant. Then the households would prefer to purchase meat because it is now relatively cheaper. The increase in demand with a fall in the price of meat will move the demand curve downward from left to right.(iv) Entry of new buyers. When the price of a commodity falls, its demand not only increases from the old buyers but the new buyers also enter the market. The combined result of the .income and substitution effect is that demand extends, ceteris paribus, as the price falls. The demand curve slopes downward from left to right.
Why does the demand curve slope down and to the right?
The demand / supply graph is designed to have supply on the vertical axis (Y) and demand on the horizontal (X). Thus you will have a higher supply = lower demand, or lower supply = high demand.
Derivation of demand curve from price consumption curve?
From the question I believe you know what is price consumption curve, so I start from there. After maximising utility we find the optimal consumption bundle called the demand functions. These demand functions are functions of prices and income. A price consumption curve is the locus of points that connect the optimal demand functions as any one commodity price changes (ceteris paribus). Now if we remember, a demand curve is a downward sloping line in a Price X Quantity framework of a particular good. And it is clear that from the Price consumption curve that as prices increase we reduce the consumption of that commodity and substitute it with the other goods. In a partial equilibrium framework i.e. Price x Quantity framework everything else is held constant, therefore as price of say "Y" increases putting in the demand function we will get that its consumption falls, hence getting a downward sloping DD (demand Curve).
If the government increases unemployment benefits then the labor demand curve shifts leftward?
In this situation, the government has increased unemployment benefits. This means that workers are less interested in finding another job right away. Therefore, it is not the demand curve that would shift. Instead the labor supply curve would shift to the left because less unemployed people are willing to get a job.This principle shows why unemployment is higher in countries that offer more lenient unemployment benefits. For example, more countries in Europe have much more lenient unemployment benefits that the United States. That is why, normally, the United States has a lower unemployment rate.I say "normally" because of the present situation in the United States, where right now, unemployment is at 9.7%(on 3/7/2010). This is not the usual unemployment in the U.S. and is a result of the recession that began in 2008.
How is the law of demand illustrated by a demand schedule and a demand curve?
increase in its price and decreases with decrease in its price, other things remaining constant
What happens to supply when demand increase?
When the demand of a product increases, so will the supply. Manufacturers will produce more of the product in order to get more money.
Why does a demand curve slope downwards are there any exceptions?
A demand curve shows the relationship between the price of something and the amount people will buy. The higher the price goes, the less of it you're going to sell. The demand curve has so many exceptions it's basically worthless. It's just a business-school exercise item. Let me throw out an exception: chocolate. Let's say it's August and chocolate's $10 per kilogram, and we're selling all we can make. In September I decide to raise the price to $15 per kilogram. All of a sudden sales of chocolate go UP drastically. Using a demand curve in isolation, sales of chocolate should have gone down. They went up because it's time to start making chocolate Santas. ------------------------------------------------------------------------------------------------- SEPERATE POST The demand curve is not worthless. "The demand curve graphs the relationship between the quantity demanded of a good and it's price, holding constant all other influences on consumers' planned purchases"(Parkin 1.). The example given above is inaccurate as it would not take into account the seasonal demand factors. If these factored in when preparing the demand curve you would find that it true. See; 1. Michael Parkin (1993), 2nd Edition, "Microeconomics". (pgs 73-78)
Elasticity is less than 1?
then it's inelastic. Say you're talking about price elasticity of demand , this is represented with a much more upright curve as quantity changes little with a large movement in price.
What is a line or smooth curve?
Between the two point line to say that is both a curve and there are clear.
What would be the best blackberry curve?
I would say either the curve 9320,8520 or one of the bolds
