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Economics Project Change in demand
Change in demand ~ It is caused by a change in factors (e. g. income, taste, etc) other than a good’s own price. Change in factors : Income Taste Weather ~ It is represented by a shift of the entire demand curve.
Increase in demand e. g. 1 Recently, there is a cartoon about Yo-Yo showing on the TV. This attracts many children have interest on buying it. Price($) D 1 D Q / period There is a change in taste in favour of Yo-Yo. The demand for Yo-Yo increases and the demand curve of it shifts to the right.
e. g. 2 Recently, there is a tendency to get slim. Most of the women concern their body shape and want to keep fit. So there is a great demand for Weight Loss Product. . Price($) D 1 D Q / period There is a change in taste in favour of Weight Loss Product. The demand of it increases and the demand curve shifts to the right.
e. g. 3 MTR and bus are substitutes. Recently, MTR has expanded to Tseung Kwan O Extension. And they offer a series of fare discount by travelling from Tseung Kwan O to town. The fare of MTR is cheaper than the bus to and from town. There is an increase in demand for the service from MTR. Price($) D 1 D Q / period As a result, the demand for MTR service increases and its demand curve shifts to right.
Decrease in demand e. g. 1 When the Tamagotshi was sold, there was a great demand for it. After a period of time, no more people wanted to buy it and there is a drop in demand for Tamagotshi. Price($) D 1 D Q / period There is a change in taste against Tamagotshi. The demand of it decreases and the demand curve shifts to the left.
e. g. 2 The flights of China Airlines had several serious accidents. And passengers lose confidence on it and afraid of the same accident to happen. There is a fall in demand for the service provided by China Airlines. Price($) D D 1 Q / period Because of the accidents, the demand for the service provided by this airline decreases and the demand curve of it shifts to the left.
e. g. 3 Private houses and Public houses are substitutes. In recent years, Property Market is falling. This makes the price of the private houses also declines. The price of public houses is more expensive than the private houses. There is a decrease in demand for public houses. Price($) D D 1 Q / period As a result, the demand for public houses decreases and the demand curve shifts to the left.
The End Timmi Pau Julie Tse Cizzy Yau