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 March 4, 2021, 11:42 pm 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 ...