Determinants of demand Marker price ● Consumer income o Prices of related goods o Tastes Expectations Population
Determinants of Demand • Marker price • Consumer income • Prices of related goods • Tastes • Expectations • Population
Change in Quantity Demanded vS Change in demand Change in Quantity Demanded Movement along the demand curve Caused by a change in the price of the product Change in demand a shift in the demand curve, either to the left or right Caused by a change in a determinant other than the price
Change in Quantity Demanded vs. Change in Demand • Change in Quantity Demanded – Movement along the demand curve. – Caused by a change in the price of the product. • Change in Demand – A shift in the demand curve, either to the left or right. – Caused by a change in a determinant other than the price
Changes in quantity Demanded Price of C igarettes per Pack A tax that raises the price of cigarettes results in a 400 movementalong the demand curve 2.00 A D1 12 20 Number of Cigarettes Smoked per Day
Changes in Quantity Demanded 0 D1 Price of Cigarettes per Pack Number of Cigarettes Smoked per Day A tax that raises the price of cigarettes results in a movement along the demand curve. A C 20 2.00 $4.00 12