Factors that influence the demand curve to shift: • Causes of shifts in demand • Changes in disposable income • Changes in taste and fashion (changes in preferences) - tastes and preferences are assumed to be fixed in the short-run. This assumption of fixed preferences is a necessary condition for aggregation of individual demand curves … Read more

Demand is the quantity of a good buyers wish and are able to purchase at each conceivable price over a given period of time. Law of demand says, when the price of a good rises, the quantity demanded will fall, other things being equal. Quantity demanded – the amount of a good that a consumer … Read more