Answer to Question #167721 in Macroeconomics for Love

Question

The demand curve for eba at mama abuja shows an inverse relationship between price and quantity demanded in 2020 but in 2021 the demand for eba at mama abuja shows a positive relationship between price and quantity demanded. Kindly explain the factors responsible for this change 

Answer 1

Income of the Consumers.

The higher the income of the customers , the greater the demand for eba. As a result of the rise in the income of the customers, the demand increases hence the demand curve shifts upward.

The Number of Consumers in the Market.

The market demand for eba is obtained by adding up the individual demands of the present as well as potential consumers of a good at various possible prices. The higher the number of consumers of eba , the higher the market demand for it.

Changes in Prices of the Related Goods

The demand for eba is also influenced by the prices of other related goods and substitutes or complements. When the demand curve is drawn for eba we take the prices of the related goods as remaining constant.