Changes in Demand

Table of Contents



  • Rise in Demand
  • Fall in Demand
  • Equilibrium
  • Equilibrium price
  • Equilibrium Quantity
  • Shift along the curve



"Demand" in Economics is characterized as the material needs and desires of a product from the population. Demand may change over time as the population formulates new needs, as the amount of resources available (supply) rises or falls, as the price of a product changes, as technology changes, etc.--it is not a constant variable, but is dependent on other factors.

Shifts in the demand curves


When a rise in demand occurs, the curve shifts to the right, causing an increase in equilibrium quantity and equilibrium price.

When a fall in demand occurs, the curve shifts to the left, causing a decrease in equilibrium quantity and equilibrium price.

ChangesInDemand.jpg

Shift along the curve

When there is a shift along the curve, there in a change in quanity demanded, not demand. A shift along the curve only when there is a price increase or decrease. For example if the price of milk rose, there would be a decrease in the quantity demanded, not demand if you were graphing the milk market.


external image movement+demand+curve.jpg


Sources

1. http://www.bizearly.com/2010/02/demand-in-economics/
2.http://3.bp.blogspot.com/_NXS1mcY2wvU/ShuWiKFBTVI/AAAAAAAAAA8/KOZOmMqOY5w/s400/movement+demand+curve.jpg