2007-01-29 00:45:41 · 2 answers · asked by tuti 1 in Social Science ➔ Economics
If an influence of demand changes, one of two things will occur. The most likely response of the demand curve is that it will shift. If news that butter will lengthen your life by bathing in it hits the market, the demand for butter will increase. The demand curve would shift to the right, and more butter would be purchased at a higher price.
The other response that could occur would be that the demand curve could become more or less elastic. However, this is rare, and I can't think of any examples of how it would off the top of my head. Hope this helps.
2007-01-29 00:52:14 · answer #1 · answered by theeconomicsguy 5 · 0⤊ 0⤋
if demand changes because of the price of the commodity the movement takes place along the same demand curve.
if demand extends due to a fall in the price, the coordinating point shifts to the right on the same demand curve.
if demand contracts due to a rise in the price, the coordinating pont shifts to the left of the same demand curve.
if demand changes due to any other influence than the price of the commodity, there is a shift in the demand curve.
it shifts upwards if there is an increase and downwards if there is
a decrease in demand.
2007-01-29 09:01:20 · answer #2 · answered by Chandra 2 · 0⤊ 0⤋