西方经济学--英文版.pptVIP

2.4 Market Demand Schedule and Curve Market demand is the total demand of all the consumers for a particular good. It can also be derived by the lateral summation of the consumers demand curves. 2.4 Market Demand Schedule and Curve 2.5 A Change in Quantity Demanded and a Change in Demand A change in quantity demanded is a movement along the demand curve. This is brought about by changes in the price of the good. A change in demand is the shift of the demand curve. Thus, an increase or decrease in demand means that greater or smaller quantity is purchased at the same price. This shift of the demand curve results from a change in any of the determinants of demand. 2.5 A Change in Quantity Demanded and a Change in Demand 2.6 Factors which Cause the Demand Curve to Shift a) Tastes and Preferences Consumers’ tastes and preferences change over time. They may be influenced by factors like age, education and advertisements. b) Income An increase (or decrease) in income would usually lead to more (or less) of a good being bought. c) Future Expectations If consumers expect prices to rise in the future, they would buy more of the goods in order to avoid paying more in future. However, if they expect prices to fall, they would check their consumption. 2.6 Factors which Cause the Demand Curve to Shift d) Changes in Population Changes in the size and structure of population would affect demand. Generally, an increase in population would lead to an increase in demand. e) Prices of Other Goods Complements : coffee and sugar. If price of coffee falls, more coffee would be bought. This would lead to an increase in demand for sugar. Substitutes: butter and margarine. If the price of margarine falls, consumers would shift their demand from butter to margarine, which is cheaper now. f) Government Policies If the government introduces new taxes or increases existing tax rate, the taxpayers incomes would fall, thus reducing their demand for goods. 2.7 Review Questi