Business Administration - Accounting & Financial Planning ECN502 Lecture Notes - Lecture 3: Demand Curve, International Trade
Variables Affecting Demand: Expectations
• What consumers expect future economic conditions to be
• Expectations could relate to the price of a product
– An expected price increase will increase current
demand and vice versa.
• Expectations may also relate to the economy at large
– If consumers expect that their income will increase,
they may undertake major expenditures.
Variables Affecting Demand: Population
• The potential buyers of a product depends on the
country’s population
• International trade extends the number of potential
buyers beyond a country’s population
• The demand for a product depends on certain
demographic characteristics
A Change in Demand versus a Change in Quantity
Demanded
• A change in quantity demanded is the result of a change
in price
• Graphically, it leads to a movement along the demand
curve
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Document Summary
Variables affecting demand: expectations: what consumers expect future economic conditions to be, expectations could relate to the price of a product. An expected price increase will increase current: expectations may also relate to the economy at large. If consumers expect that their income will increase, demand and vice versa. they may undertake major expenditures. country"s population. Variables affecting demand: population: the potential buyers of a product depends on the, international trade extends the number of potential, the demand for a product depends on certain buyers beyond a country"s population demographic characteristics. Demanded: a change in quantity demanded is the result of a change, graphically, it leads to a movement along the demand in price curve. Demanded: a change in demand is caused by changes in the variables other than price, at each price level, quantity demanded of the product changes. A change in demand versus a change in quantity.