Answer to Question #219318 in Microeconomics for Lashley

Question

In a certain market, 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 = 200 -3P. From the statement above tell in one sentence the change in
demand; what did you consider as the indicator? Write down any five factors
responsible for the change in demand. Support your answers by sketching the
equations above on the same graph.

Answer 1

A) The change in demand for peaches could be due to many possibilities, the most appropriate could be the change in the tastes and preference of the consumer as in August there is monsoon, so people might not prefer to eat peaches in monsoon. 

B) The factors affecting demand are:

• Income of the consumer
• Taste and preferences
• Related Good's Price i.e. Price of Complements
• Population

For plotting the demand curve, 

QD=400-3P

When P=0, Qd = 400

and when Qd = 0 then Price = 133.33 .

Thus AB represents the initial demand curve.

QD=200-3P

When P=0, Qd = 200

and when Qd = 0 then Price = 66.66

Thus CD represents the demand curve with change in demand shown by downward shift in the demand curve.