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DEMAND (SHIFT IN DEMAND (1. Real Income :moneybag: (normal good (income …
DEMAND
CHANGE IN
DEMAND
Caused by
NON-PRICE
factors
SHIFT
DEMAND CURVE
downward-sloping line
relationship between price and quantity demanded
Inverse/ Indirect relationship
MARKET DEMAND
Sum
of all individual demands
Market demand curve
the summation of all
the individual demand curves
CHANGE IN
QUANTITY DEMANDED
Caused by a
change in PRICE
MOVEMENT
CETERIS PARIBUS
the one being studied:
CHANGED
relevant variables :
UNCHANGED
SHIFT IN DEMAND
1. Real Income
:moneybag:
normal good
income :arrow_down: => demand :arrow_down:
inferior good
income :arrow_down: => demand :arrow_up:
2. Prices of Related Goods
Substitutes
goods equally able to
satisfy a demand
price of 1 good :arrow_up:
=> demand for the other :arrow_up:
Complements
goods used together
price of 1 good :arrow_up:
=> demand for the other :arrow_down:
3. Tastes
4. Expectations
5. Number of Buyers
LAW OF DEMAND
other things
EQUAL
Price :arrow_up: => quantity demanded :arrow_down:
