About the demand@ pls come and help. it can affect my test!!

2006-12-06 8:28 am
one question ask me to list one possible example that may lead to a change in demand of a product.my answer: when the price of a product raise a lot, the demand will change as the result of decreasing and the teacher said it's wrong.

demand refers to the plan of purchase.
so , when the price increase a lot which none of the ppl in hk can satisfy, then no one plan to buy it. so the demand is changed !

回答 (1)

2006-12-06 8:35 am
✔ 最佳答案
Your answer is wrong because when the price of the product increases, it the quantity demanded that changes, not the demand (note, demand and quantity demanded are totally different)

Things that change demand are:

1.)tastes or preferences of consumers

an increased taste in a product increases its demand
a decreased taste in a product decreases its demand

2.) number of consumers in the market

more consumers increases a products demand
fewer consumers decreases a products demand

3.) the money incomes of consumers

Superior goods or normal goods

As income increases, a superior good's demand increases
As income decreases, a superior good's demand decreases
Superior goods are most common goods

Inferior Goods

As income increases, an inferior good's demand decreases
As income decreases, an inferior good's demand increases

4.) prices of related goods

Substitute Goods

As price of A increases, demand for B increases
As price of A decreases, demand for B decreases
Example: Nike's and Reeboks
Complementary Goods

As price of A increases, demand for B decreases
As price of B decreases, demand for A increases
Example: computers and computer games; gasoline and motor oil
Independent Goods

As price of good A changes, demand for good B does not change

5.) consumer expectations about the future prices and incomes

if consumers expect a price increase in near future, demand increases
if consumers expect a price decrease in the near future, demand decreases

hope this clarifies a bit.


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