ECON101 Lecture Notes - Lecture 4: Per Capita Income, Conspicuous Consumption, Demand Curve

• School: University of Waterloo
• Department: Economics
• Course: ECON101
• Professor: all

Document Summary

Dc = f ( pc, poc, efp, cp, p, y, efy ) ( efp ) if consumers expect the price to rise in the future, the current demand will increase. If consumers expect the price to fall in the future, the current demand will decrease. (bc people will wait and buy the product later at a cheaper price ) ( cp ) consumer preference changes all the time. If consumer preferences change in favor of the commodity the demand will increase. (d5 to d6) If consumers preferences fall for that commodity the demand will decrease. ( d5 to d4) (p) if population is growing, the demand for a particular commodity will increase in demand. The demand will go up depending on the age cohort that increases. Example: if 30-40"s increase demand for houses increase. If 5-10"s increase demand for certain toys will increase.