Several determinants of demand besides price
Illustrate the several determinants of demand besides price which affect demand?
Expert
Changes in determinants cause changes in demand. There are several determinants of demand besides price which affect demand are:-
a. Tastes—-favorable change leads to increase in demand; unfavorable change to decrease.
b. Number of buyers—the more buyers lead to an increase in demand; fewer buyers lead to decrease.
c. Income—more leads to increase in demand; less leads to decrease in demand for normal goods. (The rare case of goods whose demand varies inversely with income is called inferior goods).
d. Prices of related goods also affect demand.
i. Substitute goods (those that can be used in place of each other): The price of the substitute good and demand for the other good are directly related. If price of Budweiser rises, demand for Miller should increase.
ii. Complementary goods (those that are used together like tennis balls and rackets): there is an opposite relationship among price of one and demand for other when goods are complements.
e. Expectations—consumer views about future prices, product availability, and income can shift demand.
Define the Legal forms of businesses?
Briefly explain the term Average cost and Marginal cost?
“The best of all probable worlds is one in that we adopt policies which maximize the happiness of the lots number of people” is a statement of the utilitarian philosophy attributed to: (w) Alfred Korzybski. (x) Hugo Grotius. (y) Xenophon.
The “invisible hand” of the marketplace is a word referring to consider as: (w) government policies to set market prices at equilibrium levels. (x) speculative manipulations which create disequilibrium. (y) automatic adjus
Hello, I would like help with my assignment.
Write down the importance of Earnings per share?
Explain this statement: “If resources were unlimited and freely available, there would be no subject called economics.”
What does high or low operating leverage specify?
Normal resident: The persons or an institution who lives in a country and whose centre of interest lies in that country is termed as a normal resident of that country.
Explain the statement: “Good economic policy requires good economic theory.”?
18,76,764
1959355 Asked
3,689
Active Tutors
1455195
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!