0
How can the demand for one good be affected by the increased demand for another one?
Example 1: There are two main ways this can happen. It depends on whether the two goods are complimentary goods or substitute goods.
For example, Hot Dogs and Ketchup are complimentary goods (because they go together) so when the demand for hot dogs goes up, so does the demand for ketchup
Example 2. Cars and trucks are substitute goods because, even though they are in the same market, people tend to only buy one or the other. So if the demand for trucks went up, this would mean the demand for cars is going down.
If you don't like this I can give the answer to this Multiple Choice Questions like it has on the Shifts of the Demand Curve Worksheet.
1. When the goods are bought together, increased demand for one will decrease for the other
2. If the goods are used together, increased demand for one will increase demand for the other (This is the correct answer)
3. If the goods are substitutes for each other, increased demand for one will increase the demand for the other.
4. A drop in price for the good will increase demand for the good and it's substitute.
What else can I help you with?
What is cross price elasticity demand?
Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.
When the decrease in the price of one good causes the demand for another good to decrease the goods are?
substitue
Is the primary loan holder's credit affected when a cosigner declares bankruptcy?
CR??? NO. The loan?? Possibility. that's why the lender required you to have a co-signor. Your CR is not very good. They could require you to get another co-signor or demand payoff.
What is an example of change in demand?
Well to answer the question lets go back a few steps: In Economics: Law of Demand ( according to investopedia) - A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa. Here's a graph of what a typical demand curve looks like: click the NeTMBA link that follows this answer So now that we know what the Law of Demand is now lets see what effects it. The Law of Demand is affected by: * Customer Preference * Income * Number of Potential buyers * Expectations of Price Change * Price of Related goods- Complements and Substitutes Complements- a good often consumed together with another good in economics. So if the Price of complements goes up then the demand for the good goes down thus shifting the graph to the left. Substitutes- A good where in can be used in place of another. There are other factors that effect it but the list above are some of the most common ones. I hope this helps with understanding the law of demand. To find an example of this click on the NeTMBA link that follows to see it.
Definition for ''law of demand''?
In economics, the law of demand states:- As the price of a good or service increases, the demand for that good or service will decrease.- As the price of a good or service decreases, the demand for that good or service will increases.
How can the demand for one good be affected by increase demand for another one?
if goods are used together, increased demandfor one will increase demand for the other
What is the relationship between a complimentary good and the demand for the main product?
A complimentary good is a product that is typically used together with another product. The demand for the main product is positively affected by the demand for its complimentary good. When the demand for the complimentary good increases, it can lead to an increase in the demand for the main product as well.
Demand for one good or service that is determined by demand for another good or service is?
derived demand
Demand for one good or service that is determined by demand for another good or service is .?
derived demand
How can the demand for one good be affected by increased demand for one another?
They compete for the consumers' dollars. If I spend on a car I have no $ for clothing. They compete for capacity, If I eat cake I have no capacity to use pie. They compete for materials. If I use corn to fuel cars there is less corn to eat.
When a price of a good increased by 2 percent the quantity demanded decreased by 10 percent What is the price elasticity of demand?
Price elasticity of demand= percentage change in demand/percentage cgange in price 2 = % chnge in demand/10 % change in demand= 2*10 % change in demand= 20%
What is price demand income demand and cross demand?
Price demand refers to the relationship between the price of a good and the quantity demanded by consumers; typically, as prices decrease, demand increases, and vice versa. Income demand indicates how the quantity demanded of a good changes as consumer income changes, with normal goods seeing increased demand as income rises, while inferior goods may see decreased demand. Cross demand measures how the quantity demanded of one good responds to changes in the price of another good, where substitutes see an increase in demand when the price of the alternative rises, and complements see a decrease in demand when the price of the related good rises.
Cross elasticity of demand?
In economics , the cross elasticity of demand and cross price elasticity of demand measures the responsiveness of the quantity demand of a good to a change in the price of another good.
How price of related goods affect demand?
Price of related goods fall into two categories: substitutes and complements. Complements are when a price decrease in one good increases the demand of another good. Substitutes are when a price decrease in one good decreases the demand for another good.
What happens when the demand for one good or service results in the demand for another?
When the demand for one good or service leads to an increase in the demand for another, it is known as complementary demand. This means that the two goods or services are often used together or are seen as related in some way. As a result, an increase in the demand for one product will typically lead to an increase in the demand for the other.
What is cross price elasticity demand?
Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.
What is indirect demand?
Indirect demand refers to the demand for goods or services that arises from the demand for another good or service. This can occur when one product is necessary for using another product, causing a ripple effect in the demand chain. For example, the demand for automobile tires is indirectly driven by the demand for automobiles.
