Please enable JavaScript.
Coggle requires JavaScript to display documents.
DEMAND (FACTORS AFFECTING DEMAND (If the average income for households…
DEMAND
FACTORS AFFECTING DEMAND
If the average income for households falls, demand will decreases and the demand curve will shift to the left .
When a person lost their job, their family cut back on their discretionary expenditure (e.g. holidays and entertainment)
If a product is in fashion , demand will increase and the demand curve will shift to the right
-
-
If interest rates on loans increase, demand for products will decrease and the demand curve will shift to the left .
The interest rate on a family's mortgage increased, so they cut back on their discretionary expenditure
-
If a business advertises a product, demand will increase and the demand curve will shift to the right
When Levis launched an adverting campaign for their 501 jeans in the late 1980's , sales of the jeans increased by 800%
MOVEMENT AND SHIFTS
As well as price , there are other factors that cause movement of the demand curve . These factors may cause the demand curve to shift to the left or to the right
If the demand curve shifts to the right , demand has increased
If the demand curve shifts to the left , demand has decreased
-
DEMAND CURVE
The relationship between demand and price at any given time can be shown on a graph called a demand curve
Generally , a demand curve shows that the higher the price , the lower the demand for the product . this type of curve is said to have a downward or negative slope .
-
-
-
-
-
-
-
-