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Microeconomics, Market, Shift of curve, Movement along the curve - Coggle…

- - - - Why?
        
        (1) Income effect:When price of a good falls then people will have increase in their "real income", so they can buy more of the goods.
        
        (2) Substitution effect: When price falls, the product will become relatively more attractive to people than other products.
        
        (3) Diminishing marginal utility:Consumer is willing to pay less for any additional good. Therefore it is more likely that consumers' marginal utility will correspond to price if the price is lower.
    - - Income
        
        Norml goods: As income rises demand for the good increases. (cinema tickets, food etc)
        
        Inferior goods: As income rises demand falls. (cheap wine)
      - Price of other products
        
        Substitutes:If price of substitute goods falls then demand for the product falls (chicken meat and beaf)
        
        Complements: If price of complemen good falls then demand for the product increses (cars and motors)
      - Taste/Preferences
        
        If taste of the population will change in favour of the good then demand will increase
      - Other factors
        
        Size of population; Age structure of population; Income distribution; Government policies; Seasonal changes