Factors affecting quantity demanded of a product.

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Answer 1

Question

Chapter 6, Problem 1TY

To determine

Factors affecting quantity demanded of a product.

Expert Solution & Answer

Explanation of Solution

A demand curve is a graphical representation of a demand schedule. The change in quantity demanded of a product in a demand curve is depicted in two ways as follows:

Movement along the demand curve: This happens when the price of a good changes.A rise in price leads to an upward movement along the demand curve, whereas, a fall in price leads to a downward movement along the demand curve.

This is because, as per law of demand, when the price of a good rises/falls its quantity demanded decreases/increases.

Shift in the demand curve: When factors other than the prices change, demand curve shifts either left or right.

Following factors lead to shift in the demand curve:

Income of the consumer- A consumer feels richer when his/her income rises. Thus, any rational consumer would like to consume more goods of better, high quality standards when his/ her income rises.

In this case demand curve will shift rightwards. Fall in income will shift the curve leftwards.

Goods (e.g. smart phones, trips to amusement parks, clothing) whose quantity demanded increases when the income rises keeping the price constant are called "Normal Goods".

However, sometimes this may not be the case. Quantity demanded may not rise with the rise in income.

For example, a consumer using a secondhand car would like to switch to a new car on rise in income. Such goods whose quantity demanded falls on rise in income are called "Inferior Goods".

Prices and availability of related goods- The related goods can be further divided into two categories:

Substitute Goods-

When price of a good (say, coffee) rises, then the quantity demanded of good in question (say, tea) rises, vice versa.

Increase in demand will shift the demand curve rightwards whereas decrease in demand will shift it leftwards.

b. Complementary Goods- These are the goods that are used together. For example, car and petrol. When price of a good (say, petrol) rises, then the quantity demanded of good in question (say, car) falls, vice versa.

Increase in demand will shift the demand curve rightwards whereas decrease in demand will shift it leftwards.

Population- More people imply more wants and hence increase in demand. Thus, increase in population shifts the demand curve rightwards due to rise in demand. Whereas decline in population will shift the curve leftwards due to fall in demand.
Changes in expectations about the future- Any prediction of change in income of a consumer or price of good in future impacts the change in quantity demanded of the good in question today. For example:
This will lead to fall in quantity demanded of gold today, leading to leftward shift in the demand curve.

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Students have asked these similar questions

Factors affecting change in demand

Evaluate the behavior of consumers in terms of the demand for products

Identify a product or service for which you use on a regular basis. Discuss the product/service in terms of the Law of Demand from your perspective as the customer and consumer of the item. How does price impact your quantity demanded? In other words, what is your change in quantity demanded as a result in an increase or decrease in the product’s price? What are some shift factors of demand (anything other than price) that can adjust your overall demand for the product?

Answer 2

Question

Chapter 6, Problem 1TY

To determine

Factors affecting quantity demanded of a product.

Expert Solution & Answer

Explanation of Solution

A demand curve is a graphical representation of a demand schedule. The change in quantity demanded of a product in a demand curve is depicted in two ways as follows:

Movement along the demand curve: This happens when the price of a good changes.A rise in price leads to an upward movement along the demand curve, whereas, a fall in price leads to a downward movement along the demand curve.

This is because, as per law of demand, when the price of a good rises/falls its quantity demanded decreases/increases.

Shift in the demand curve: When factors other than the prices change, demand curve shifts either left or right.

Following factors lead to shift in the demand curve:

Income of the consumer- A consumer feels richer when his/her income rises. Thus, any rational consumer would like to consume more goods of better, high quality standards when his/ her income rises.

In this case demand curve will shift rightwards. Fall in income will shift the curve leftwards.

Goods (e.g. smart phones, trips to amusement parks, clothing) whose quantity demanded increases when the income rises keeping the price constant are called "Normal Goods".

However, sometimes this may not be the case. Quantity demanded may not rise with the rise in income.

For example, a consumer using a secondhand car would like to switch to a new car on rise in income. Such goods whose quantity demanded falls on rise in income are called "Inferior Goods".

Prices and availability of related goods- The related goods can be further divided into two categories:

Substitute Goods-

When price of a good (say, coffee) rises, then the quantity demanded of good in question (say, tea) rises, vice versa.

Increase in demand will shift the demand curve rightwards whereas decrease in demand will shift it leftwards.

b. Complementary Goods- These are the goods that are used together. For example, car and petrol. When price of a good (say, petrol) rises, then the quantity demanded of good in question (say, car) falls, vice versa.

Increase in demand will shift the demand curve rightwards whereas decrease in demand will shift it leftwards.

Population- More people imply more wants and hence increase in demand. Thus, increase in population shifts the demand curve rightwards due to rise in demand. Whereas decline in population will shift the curve leftwards due to fall in demand.
Changes in expectations about the future- Any prediction of change in income of a consumer or price of good in future impacts the change in quantity demanded of the good in question today. For example:
This will lead to fall in quantity demanded of gold today, leading to leftward shift in the demand curve.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 6, Problem 1TY

To determine

Factors affecting quantity demanded of a product.

Expert Solution & Answer

Explanation of Solution

A demand curve is a graphical representation of a demand schedule. The change in quantity demanded of a product in a demand curve is depicted in two ways as follows:

Movement along the demand curve: This happens when the price of a good changes.A rise in price leads to an upward movement along the demand curve, whereas, a fall in price leads to a downward movement along the demand curve.

This is because, as per law of demand, when the price of a good rises/falls its quantity demanded decreases/increases.

Shift in the demand curve: When factors other than the prices change, demand curve shifts either left or right.

Following factors lead to shift in the demand curve:

Income of the consumer- A consumer feels richer when his/her income rises. Thus, any rational consumer would like to consume more goods of better, high quality standards when his/ her income rises.

In this case demand curve will shift rightwards. Fall in income will shift the curve leftwards.

Goods (e.g. smart phones, trips to amusement parks, clothing) whose quantity demanded increases when the income rises keeping the price constant are called "Normal Goods".

However, sometimes this may not be the case. Quantity demanded may not rise with the rise in income.

For example, a consumer using a secondhand car would like to switch to a new car on rise in income. Such goods whose quantity demanded falls on rise in income are called "Inferior Goods".

Prices and availability of related goods- The related goods can be further divided into two categories:

Substitute Goods-

When price of a good (say, coffee) rises, then the quantity demanded of good in question (say, tea) rises, vice versa.

Increase in demand will shift the demand curve rightwards whereas decrease in demand will shift it leftwards.

b. Complementary Goods- These are the goods that are used together. For example, car and petrol. When price of a good (say, petrol) rises, then the quantity demanded of good in question (say, car) falls, vice versa.

Increase in demand will shift the demand curve rightwards whereas decrease in demand will shift it leftwards.

Population- More people imply more wants and hence increase in demand. Thus, increase in population shifts the demand curve rightwards due to rise in demand. Whereas decline in population will shift the curve leftwards due to fall in demand.
Changes in expectations about the future- Any prediction of change in income of a consumer or price of good in future impacts the change in quantity demanded of the good in question today. For example:
This will lead to fall in quantity demanded of gold today, leading to leftward shift in the demand curve.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 6, Problem 1TY

To determine

Factors affecting quantity demanded of a product.

Expert Solution & Answer

Explanation of Solution

A demand curve is a graphical representation of a demand schedule. The change in quantity demanded of a product in a demand curve is depicted in two ways as follows:

Movement along the demand curve: This happens when the price of a good changes.A rise in price leads to an upward movement along the demand curve, whereas, a fall in price leads to a downward movement along the demand curve.

This is because, as per law of demand, when the price of a good rises/falls its quantity demanded decreases/increases.

Shift in the demand curve: When factors other than the prices change, demand curve shifts either left or right.

Following factors lead to shift in the demand curve:

Income of the consumer- A consumer feels richer when his/her income rises. Thus, any rational consumer would like to consume more goods of better, high quality standards when his/ her income rises.

In this case demand curve will shift rightwards. Fall in income will shift the curve leftwards.

Goods (e.g. smart phones, trips to amusement parks, clothing) whose quantity demanded increases when the income rises keeping the price constant are called "Normal Goods".

However, sometimes this may not be the case. Quantity demanded may not rise with the rise in income.

For example, a consumer using a secondhand car would like to switch to a new car on rise in income. Such goods whose quantity demanded falls on rise in income are called "Inferior Goods".

Prices and availability of related goods- The related goods can be further divided into two categories:

Substitute Goods-

When price of a good (say, coffee) rises, then the quantity demanded of good in question (say, tea) rises, vice versa.

Increase in demand will shift the demand curve rightwards whereas decrease in demand will shift it leftwards.

b. Complementary Goods- These are the goods that are used together. For example, car and petrol. When price of a good (say, petrol) rises, then the quantity demanded of good in question (say, car) falls, vice versa.

Increase in demand will shift the demand curve rightwards whereas decrease in demand will shift it leftwards.

Population- More people imply more wants and hence increase in demand. Thus, increase in population shifts the demand curve rightwards due to rise in demand. Whereas decline in population will shift the curve leftwards due to fall in demand.
Changes in expectations about the future- Any prediction of change in income of a consumer or price of good in future impacts the change in quantity demanded of the good in question today. For example:
This will lead to fall in quantity demanded of gold today, leading to leftward shift in the demand curve.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 1TY

To determine

Factors affecting quantity demanded of a product.

Expert Solution & Answer

Explanation of Solution

A demand curve is a graphical representation of a demand schedule. The change in quantity demanded of a product in a demand curve is depicted in two ways as follows:

Movement along the demand curve: This happens when the price of a good changes.A rise in price leads to an upward movement along the demand curve, whereas, a fall in price leads to a downward movement along the demand curve.

This is because, as per law of demand, when the price of a good rises/falls its quantity demanded decreases/increases.

Shift in the demand curve: When factors other than the prices change, demand curve shifts either left or right.

Following factors lead to shift in the demand curve:

Income of the consumer- A consumer feels richer when his/her income rises. Thus, any rational consumer would like to consume more goods of better, high quality standards when his/ her income rises.

In this case demand curve will shift rightwards. Fall in income will shift the curve leftwards.

Goods (e.g. smart phones, trips to amusement parks, clothing) whose quantity demanded increases when the income rises keeping the price constant are called "Normal Goods".

However, sometimes this may not be the case. Quantity demanded may not rise with the rise in income.

For example, a consumer using a secondhand car would like to switch to a new car on rise in income. Such goods whose quantity demanded falls on rise in income are called "Inferior Goods".

Prices and availability of related goods- The related goods can be further divided into two categories:

Substitute Goods-

When price of a good (say, coffee) rises, then the quantity demanded of good in question (say, tea) rises, vice versa.

Increase in demand will shift the demand curve rightwards whereas decrease in demand will shift it leftwards.

b. Complementary Goods- These are the goods that are used together. For example, car and petrol. When price of a good (say, petrol) rises, then the quantity demanded of good in question (say, car) falls, vice versa.

Increase in demand will shift the demand curve rightwards whereas decrease in demand will shift it leftwards.

Population- More people imply more wants and hence increase in demand. Thus, increase in population shifts the demand curve rightwards due to rise in demand. Whereas decline in population will shift the curve leftwards due to fall in demand.
Changes in expectations about the future- Any prediction of change in income of a consumer or price of good in future impacts the change in quantity demanded of the good in question today. For example:
This will lead to fall in quantity demanded of gold today, leading to leftward shift in the demand curve.

Answer 6

Chapter 6, Problem 1TY

To determine

Factors affecting quantity demanded of a product.

Expert Solution & Answer

Explanation of Solution

A demand curve is a graphical representation of a demand schedule. The change in quantity demanded of a product in a demand curve is depicted in two ways as follows:

Movement along the demand curve: This happens when the price of a good changes.A rise in price leads to an upward movement along the demand curve, whereas, a fall in price leads to a downward movement along the demand curve.

This is because, as per law of demand, when the price of a good rises/falls its quantity demanded decreases/increases.

Shift in the demand curve: When factors other than the prices change, demand curve shifts either left or right.

Following factors lead to shift in the demand curve:

Income of the consumer- A consumer feels richer when his/her income rises. Thus, any rational consumer would like to consume more goods of better, high quality standards when his/ her income rises.

In this case demand curve will shift rightwards. Fall in income will shift the curve leftwards.

Goods (e.g. smart phones, trips to amusement parks, clothing) whose quantity demanded increases when the income rises keeping the price constant are called "Normal Goods".

However, sometimes this may not be the case. Quantity demanded may not rise with the rise in income.

For example, a consumer using a secondhand car would like to switch to a new car on rise in income. Such goods whose quantity demanded falls on rise in income are called "Inferior Goods".

Prices and availability of related goods- The related goods can be further divided into two categories:

Substitute Goods-

When price of a good (say, coffee) rises, then the quantity demanded of good in question (say, tea) rises, vice versa.

Increase in demand will shift the demand curve rightwards whereas decrease in demand will shift it leftwards.

b. Complementary Goods- These are the goods that are used together. For example, car and petrol. When price of a good (say, petrol) rises, then the quantity demanded of good in question (say, car) falls, vice versa.

Increase in demand will shift the demand curve rightwards whereas decrease in demand will shift it leftwards.

Population- More people imply more wants and hence increase in demand. Thus, increase in population shifts the demand curve rightwards due to rise in demand. Whereas decline in population will shift the curve leftwards due to fall in demand.
Changes in expectations about the future- Any prediction of change in income of a consumer or price of good in future impacts the change in quantity demanded of the good in question today. For example:
This will lead to fall in quantity demanded of gold today, leading to leftward shift in the demand curve.

Answer 7

Chapter 6, Problem 1TY

To determine

Factors affecting quantity demanded of a product.

Answer 8

Expert Solution & Answer

Explanation of Solution

A demand curve is a graphical representation of a demand schedule. The change in quantity demanded of a product in a demand curve is depicted in two ways as follows:

Movement along the demand curve: This happens when the price of a good changes.A rise in price leads to an upward movement along the demand curve, whereas, a fall in price leads to a downward movement along the demand curve.

This is because, as per law of demand, when the price of a good rises/falls its quantity demanded decreases/increases.

Shift in the demand curve: When factors other than the prices change, demand curve shifts either left or right.

Following factors lead to shift in the demand curve:

Income of the consumer- A consumer feels richer when his/her income rises. Thus, any rational consumer would like to consume more goods of better, high quality standards when his/ her income rises.

In this case demand curve will shift rightwards. Fall in income will shift the curve leftwards.

Goods (e.g. smart phones, trips to amusement parks, clothing) whose quantity demanded increases when the income rises keeping the price constant are called "Normal Goods".

However, sometimes this may not be the case. Quantity demanded may not rise with the rise in income.

For example, a consumer using a secondhand car would like to switch to a new car on rise in income. Such goods whose quantity demanded falls on rise in income are called "Inferior Goods".

Prices and availability of related goods- The related goods can be further divided into two categories:

Substitute Goods-

When price of a good (say, coffee) rises, then the quantity demanded of good in question (say, tea) rises, vice versa.

Increase in demand will shift the demand curve rightwards whereas decrease in demand will shift it leftwards.

b. Complementary Goods- These are the goods that are used together. For example, car and petrol. When price of a good (say, petrol) rises, then the quantity demanded of good in question (say, car) falls, vice versa.

Increase in demand will shift the demand curve rightwards whereas decrease in demand will shift it leftwards.

Population- More people imply more wants and hence increase in demand. Thus, increase in population shifts the demand curve rightwards due to rise in demand. Whereas decline in population will shift the curve leftwards due to fall in demand.
Changes in expectations about the future- Any prediction of change in income of a consumer or price of good in future impacts the change in quantity demanded of the good in question today. For example:
This will lead to fall in quantity demanded of gold today, leading to leftward shift in the demand curve.