does product improvement make demand curve shift to the left or don't shift the demand curve? why?
2007-06-27 07:33:44 · 2 answers · asked by Anonymous in Social Science ➔ Economics
It depends on how desirable the improvements are for the users and on the situation with the substitutes. If the improvements are desirable and/or there are close substitutes, the demand curve will shift to the RIGHT (consumers will want to buy more at any given price). If neither of those holds, there will be no impact on demand whatsoever.
2007-06-27 08:01:17 · answer #1 · answered by NC 7 · 1⤊ 0⤋
It could go in any direction. Suppose that someone invents a new dishwashing detergent that requires very little detergent. The demand curve would shift to the left. However, if the product requires more detergent, but has other better properties, then the demand might shift to the right.
2007-06-27 14:38:55 · answer #2 · answered by Allan 6 · 0⤊ 0⤋