Give your explanations on the determinants of demand. What happens to the demand curve when any of these determinants change? Distinguish between a change in demand and a change in the quantity demanded, noting the causes of each.© BrainMass Inc. brainmass.com October 25, 2018, 6:06 am ad1c9bdddf
Demand refers to a schedule that shows the various amounts of a product that consumers are willing and able to buy at each specific price in a series of possible prices during a specified time period (McConnell & Brue, 2008, p. 31). The demand schedule shows how much buyers are willing and able to purchase at different possible prices. To be meaningful, the demand schedule must have a period of time associated with it. The market price depends on demand and supply. There are several determinants of demand or the "other things," besides price, which affect demand. A change in one or more of the determinants of demand will change the demand schedule. This change in the demand schedule will shift the demand curve either negatively or positively. A shift in the demand curve is called a change in demand. A change in the quantity demand refers to the "movement from one point to another point - from one price-quantity combination to another - on a fixed demand schedule or demand curve"(McConnell & Brue, 2008, p. 50). Described below are the determinants ...
Demand determinants and Supply determinants
According to the Federal Housing Finance Agency house price index, U.S. housing prices declined throughout 2008 and 2009. What are two demand determinants and two supply determinants that might explain the broad decline in house prices that occurred in those years? Is the market currently in equilibrium?View Full Posting Details