Answer to Question #143291 in Microeconomics for Ruth Emmanuella Tchimou

Question

.a) In a certain, the demand for peach was given as QD = 400 -3P the first day of marketing in 2020, in August 2020, the demand for peach is now given as QD = 600 -3P. From the statement above tell in one sentence the changing in demand is; also tell what your indicator is. Write down any five factors responsible for the particular change in demand observed. Support your answers by sketching the appropriate the equations above on the same graph sheet.

Answer 1

A change in demand is described as a shift in consumer desire to purchase certain goods or services at a given price. Factors that affect change in demand are:

• change in the income of consumers.
• Expected price changes in the future
• Changes in tastes and preferences of consumers
• Increase or decrease in the population of consumers
• changes in prices.

From the above equation, if the price of the peach in the first day of marketing was $10, then quantity demanded would be;

400-3*10=370

if price changes to $20, then again QD will be;

400-3*20=340

Therefore, the increase in price from $10 to $20 affects the quantity demanded.

the same formula can be applied in August to arrive at;

QD=600-3*10=570

=600-3*20=540

Note the decrease in QD from 570 to 540 due to the increase in price from $10 to $20. On a graph, the demand curve will shift to the right.