Demand Chapter 4 Demand Lesson 2: Factors Affecting Demand A. - - PowerPoint PPT Presentation
Lesson 2: Factors Affecting Demand Chapter 4 Demand Lesson 2: Factors Affecting Demand A. Main Idea: Price changes quantity demanded both because it affects how wealthy consumers perceive themselves to be and because it affects the price of a
Chapter 4 Demand
how wealthy consumers perceive themselves to be and because it affects the price of a good or service in relation to other similar products.
Lesson 2: Factors Affecting Demand
demanded.
demand curve showing that a different quantity is purchased in response to a change in the price of a product
cause a change in quantity demanded
different from the income effect?
with changes in demand due to the change of one price
change in quantity demanded for a product because its price has shifted in relation to other prices.
Lesson 2: Factors Affecting Demand
effect and income effect affect the demand curve?
curve, but does not change the curve itself
demand curve to shift to the right?
demand shifts the curve to the right.
curve to shift to the left?
demand shifts it to the left
relationship in demand between a product and its substitutes.
increases, demand for its substitute generally increases.
decreases, demand for its substitute generally decreases.
demand between a product and its complement(s).
increases, demand for its complement(s) generally decreases.
decreases, demand for its complement(s) increases.
use of its complement(s)
the demand for products? Why or why not?
breakthroughs can result in fewer purchases now, shifting the curve to the left.
shortages can result in people stocking up now, shifting the curve to the right.
consumers in a market shift the demand curve left or right?
means more market demand, so the curve shifts right.
market demand, so the curve shifts to the left.