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Author Question: Why does demand not change when the price of a good changes with no change in the other influences ... (Read 27 times)

ap345

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on: Jun 29, 2018
Why does demand not change when the price of a good changes with no change in the other influences on buying plans?
 
  What will be an ideal response?

Question 2

What is meant by market failure?
 
  What will be an ideal response?


verrinzo

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Reply #1 on: Jun 29, 2018
Answer to Question 1

If the price of a good falls and nothing else changes, then the quantity of the good demanded increases and there is a movement down along the demand curve, but the demand for the good remains unchanged and the demand curve does not shift.

Answer to Question 2

Market failure occurs when resources are misallocated, or allocated inefficiently. The result is waste or lost value.


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