What are the determinants of demand and what happens to the demand curve when each of these determinants change? What is the difference between a change in demand and a change in the quantity demanded?© BrainMass Inc. brainmass.com October 10, 2019, 4:31 am ad1c9bdddf
There are five types of determinants of demand, each impacting total demand. When there is a change in any of these determinants, the curve shifts, either to the right or left, depending on the determinant influence.
1. Income. As incomes rise, the people begin to desire more luxury goods and services and this causes more to demand premium items and reduces the demand for economy items. This can work in reverse, with a demand for simple products increases and premium products decreasing during falling incomes, such as the 2008 recession. For instance, since Fall 2008, when the credit crunch causes markets to fall and unemployment to spike, the demand for vegetable seed sored 25% but shopping at Whole Foods dropped. Why? People lost their jobs so they started growing their own vegetables. Demand for seed is up; demand for imported ...
Your tutorial is 573 words and gives five determinants of demand, along with several examples to help you get the idea. Then the tutorial helps distinguish between quantity demands and demand.