Factors affecting demand and price elasticity of demand
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Write a 1,500 - 2,000 word research paper discussing a current topic in the field of Managerial Economics (the economics of the firm).
I have to submit an outline for approval before writing the paper. This is a very important paper that needs to be in APA format and make sure that it is properly setup to ensure high quality so that I can achieve a high score. Please prepare an outline for submission. Here are some sample paper topics that would be helpful: food prices, market structures, taxes, functions of a firm, etc. The paper also, has to be very specific and clear on the topic.
Once outline is approved paper will be required.
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Response helps in explaining Factors affecting demand and price elasticity of demand
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I have taken the topic: Factors affecting demand and price elasticity of demand
Outline on this topic is as follows:
1) Discussion on concept of demand
2) Outline of Law of Demand
3) Discussion on Factors affecting demand
4) Concept of Elasticity of demand
5) Factors affecting elasticity of demand
Some guidance related to the above outline:
As per csun.edu, "Demand is the relationship between the price of a good and the quantity of the good that consumers are willing and able to buy." Factors causing changes in demand are:
?Income and wealth
? prices of substitutes and complements
? population
? preferences
Hence things that would cause a rightward shift are:
- Increase in Income
- Favorable change in taste for the product
- Increase in population
- Increase in price of substitutes
Vive versa is also true. Let us take few examples:
Increase in income of the consumers will lead to increase in demand of construction. Similarly reduction in prices of complementary goods such as cheaper loans will lead to increase in demand of construction. Increase in population will lead to increase in demand of the construction. Demand for a product is considered downward sloping. This implies that demand increases when price decreases. But there are exceptions which are discussed below:
Name some products for which the demand remains unchanged regardless of the price.
These are the goods having inelastic demand such as Petrol, ...
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