Determinants of a Demand Curve:

Movement along the demand curve: There are many factors determining demand- the prime one being price. Price and quantity are the two components which form the demand curve. Any change in these two variables doesn’t cause a shift in the demand curve but a movement along what is already existent. When prices vary, quantity is altered. Usually, applying the law of demand, more will be consumed when prices drop and vice versa. When more goods are consumed due to a drop in prices there is an expansion in demand and when less is consumed due to an increase in price, it is said to be a contraction in demand.
A shift in the demand curve: Factors which do cause a shift in demand include: consumer tastes, fashion and trends, income, population, income distribution, consumer expectations and technology. When there is a change in any one of these determinants of demand there will be an alteration in the demand curve. Since these changes are not a cause of changes in price, there will be a shift in the demand curve. When more is purchased at the same price, the demand curve will shift to the right as demand increases.
When less is consumed at the same price, the demand curve will shift to the left, as there is a decrease in demand. How the determinants of demand can alter the demand curve are summarised below: 1. Consumer Tastes: consumers tastes and preferences change, which may be in favour of a certain product, increasing and decreasing demand for other goods and services 2. Income: an increase or decrease of consumer income will affect their disposable income and discretionary spending trends- increasing or decreasing demand 3.

Population: the population of an area will affect demand. A larger population means more consumers and greater demand and vice a versa. 4. Income distribution: an even distribution of income will mean an increase for demand of luxury goods by low and middle income groups whereas an uneven distribution would lead to increased demand for necessities by low and middle income earners and a decrease in luxury spending. 5. Consumer expectations: expectations of future course pries, economic activity and government economic policies may affect demand.
If there are expectations of a drop of prices in the future, consumers may choose to postpone current spending for the future. 6. Technology: Technology allows the production of new and better quality products and services, making other products and services obsolete by substituting them. Consumers may switch their demand for a superior or more convenient product or service which technology may bring along. E. g. : a newer mobile phone or a labour saving device.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 15% with the discount code SUCCESS