--%>

What are the determinants of demand

What are the determinants of demand?

E

Expert

Verified

The fundamental determinant of demand is the price of the commodity under consideration: a change in price causes movement along the commodity’s demand curve.  This movement is called a change in quantity demanded. Decline price leads to association down the demand curve: There is an increase in quantity demanded. Increased price leads to movement up the demand curve: There is a decrease in quantity demanded.

   Related Questions in Business Economics

  • Q : Summary of what can cause a decrease in

    Illustrate a summary of what can cause a decrease in demand?

  • Q : Illustrate the advantage and

    Illustrate the advantage and disadvantage of Corporations?

  • Q : Costs for a firm Question:  (a)      

    Question:  (a)       Complete the following table of costs for a firm.  (Note: enter the figures in the MC  column between outputs of  0 and 1, 1 and 2, 2 and 3, etc.) 

  • Q : Explain about the principle of

    Economic efficiency needs that, relative to the other goods which different individuals might consume, the people who value exact goods relatively the most should own and/or use all goods. Such principle is termed as: (i) economic equity. (ii) allocat

  • Q : Reason of Economic problem Why an

    Why an economic problem does arise? Answer: It arises due to following reasons: A) Shortage of resources. B) Alternative utilizations of resources. C) Limitless wants and limited resources.

  • Q : Government policies with respect to the

    Can you explain how different government policies with respect to the recycling of aluminum and paper might account for these different market outcomes?

  • Q : Illustrate Other Things Equal revisited

    Illustrate “Other Things Equal” Revisited in Supply and Demand, and Equilibrium?

  • Q : Explain the shapes of the

    Specify and explain the shapes of the marginal-benefit and marginal-cost curves and use these curves to determine the optimal allocation of resources to a particular product.  If current output is such that marginal cost exceeds marginal benefit, should more or l

  • Q : The supply curve when each of these

    What happens to the supply curve when each of these determinants changes?

  • Q : Illustrate Market Equilibrium of Supply

    Illustrate Market Equilibrium of Supply and Demand?