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Determinants of Demand & Changes in Demand
Determinants of Demand & Changes in Demand
Expectations
about future Supply?
Tastes
20
15
10
• Equilibrium
5
0
price increases.
0 2000 4000 6000 8000 10000 12000 14000 • Quantity
Quantity
demanded
Old demand New supply Supply decreases.
• An increase in
40
demand shifts the
35 demand curve to
30
25
the right.
Price
20
15 • Equilibrium price
10
5
increases.
0 • Quantity demanded
0 2000 4000 6000 8000 10000 12000 14000
Quantity
increases.
Old demand New demand Supply
• A decrease in
40 demand shifts
35
30 the demand
25
curve to the left.
Price
20
15
10
• Equilibrium
5 price falls.
0
0 2000 4000 6000 8000 10000 12000 14000 • Quantity
Quantity
demanded falls.
Old demand New demand Supply