The Chinese public institutions bring economic knowledge "translation of the demand curve" to everyone, hoping to help you prepare candidates for the public institution exams smoothly.
Economy is an indispensable part in the preparation of public basic knowledge. The investigation of economics involves micro-economy, macro-economy, international economy and market economy. The focus of micro-economy is demand-related knowledge. Today's demand curve Translation is discussed with you to help you better understand the relevant knowledge of demand curve translation.
I. Factors affecting demand (other than price)
1. Consumer income: This factor is the most important factor affecting demand in addition to its own price. Its impact on demand is that when income increases, we generally increase the demand for normal goods; otherwise, it decreases.
2. Price of related products: Related products can be subdivided into substitutes and complementary products. Substitutes are products with similar functions. Generally speaking, when the price of substitutes rises, the demand for the goods increases, and vice versa decreases; complementary goods refer to goods that have a certain function only when consumed together. Generally, as the price of a complementary product rises, the demand for that product decreases, and vice versa.
3. Expectation variables: mainly include price expectations for the commodity and income expectations. If the price of the product is expected to increase in the future, in order to avoid paying more prices in the future, the current demand will increase, and vice versa.
4. Consumer personal preferences: Consumers' preferences for a certain product will change depending on the situation, which will affect changes in demand.
5. Population: When the population capacity in the market increases, the demand for most commodities will increase, and vice versa.
Movement of the demand curve
1. Changes in demand caused by price changes
As shown in the figure, on the demand curve D0, when the price rises from P1 to P2, the demand quantity changes from point A to point B. This change is the movement of demand quantity on the demand curve D0, which indicates that other factors do not In the case of change, the quantity of demand caused by price changes.
2. Movement of the demand curve
Explanation: The reality shows that there are many factors that affect demand (as described above), which will cause the amount of demand at each price level to change. This is the change in demand, which causes the demand curve to shift.
3. Left and right shift table of demand curve
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