Answer to Question #239500 in Microeconomics for Jessa

Question

Explain one determinant of demand and discuss how it can affect the demand curve by giving an example.

Answer 1

On determinant of demand is the level of income of buyers. When the level of income rise, so will the quantity demanded making the demand curve of normal goods shift outwards. When the level of income falls the quantity demanded also falls making the demand curve of normal goods shift inwards.