Determinants of a Demand Curve:

Movement along the requirement curve There ar many factors determining require- the prime one being price. Price and cadence ar the two components which form the fill curve. Any change in these two variables doesnt cause a arouse in the demand curve but a movement along what is already existent. When prices vary, mensuration is altered. Usually, applying the law of demand, to a great extent bequeath be consumed when prices drop and vice versa. When much goods are consumed due to a drop in prices on that point is an involution in demand and when less is consumed due to an increase in price, it is give tongue to to be a contraction in demand.A shift in the demand curve Factors which do cause a shift in demand include consumer tastes, fashion and trends, income, population, income distribution, consumer expectations and technology. When there is a change in any one of these determinants of demand there lead be an alteration in the demand curve. Since these changes are not a cause of changes in price, there will be a shift in the demand curve. When more is purchased at the same price, the demand curve will shift to the right as demand increases.When less is consumed at the same price, the demand curve will shift to the left, as there is a descend in demand. How the determinants of demand can alter the demand curve are summarised be subaltern 1. Consumer Tastes consumers tastes and preferences change, which may be in favour of a accepted product, increase and decreasing demand for other goods and services 2. Income an increase or decrease of consumer income will affect their disposable income and discretionary spending trends- increasing or decreasing demand 3.Population the population of an area will affect demand. A larger population means more consumers and greater demand and vice a versa. 4. Income distribution an even distribution of income will mean an increase for demand of luxury goods by low and warmheartedness income groups whereas an une ven distribution would lead to increased demand for necessities by low and middle income earners and a decrease in luxury spending. 5. Consumer expectations expectations of future course pries, economic activity and government economic policies may affect demand.If there are expectations of a drop of prices in the future, consumers may choose to protract current spending for the future. 6. Technology Technology allows the production of new and weaken quality products and services, making other products and services obsolete by replace them. Consumers may switch their demand for a superior or more convenient product or service which technology may tote up along. E. g. a newer mobile phone or a labour redemptive device.