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Change in Demand Economics Assignment

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Added on  2020-04-07

Change in Demand Economics Assignment

   Added on 2020-04-07

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A1A change in qty demanded and change in demand are different in terms of causes and the graphical depiction.A change in qty demanded arises due to change in price of the good itself. This is shown as MOVEMENT ALONG the curve from A to B. As price falls from P1 to P2 qty demanded rises from Q1 to Q2.
Change in Demand Economics Assignment_1
An increase in demand is shown by a SHIFT of the curve from D1 to D2. An y factor that causes rise indemand can shift demand curve to right- increase in income, increase in price of a substitute or fall in price of complementary good. A fall in demand is shown by a left shift of the demand curve itself. A2We use demand supply model to explain the effects, using shifts in demand and supply to help us. (a)As the cause is price change in panels itself we show this with a movement along the curve from A to B. As result there is excess supply at the new price of P1. Demand falls short of supply at P1 but it was equal at P*.(b)Electricity and solar energy are substitutes, if the price of electricity rises, its demand will fall. This will lead to higher demand for solar energy. In turn the demand for solar panels rises. We see this with a rightward shift of demand curve from D1 to D2. This leads to a rise in price and quantity of solar panels. (c)Higher productivity affects supply of panels. As more panels can be produced at same or lower costs the supply will increase, shown as downward shift of supply curve from S1 to S2. This causes price to fall while quantity rises.
Change in Demand Economics Assignment_2
A3The answer lies in the difference in demand across winter and summer. Demand Dw for winters is below Ds, which is for summer. Also supply is higher in summer when they are picked, shown by S. Lower winter picks is shown by Sw. So in winters we have lower demand and lower supply which leads to higher price of Pw. In summers demand and supply are both higher m which lowers price to Ps. This tells us that price is determined by both demand and supply. A4The good under consideration is yoga services. Using a demand-supply approach, we consider the effects of two events that occur simultaneously here.
Change in Demand Economics Assignment_3

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