« previous next »

Author Question: Why does demand not change when the price of a good changes with no change in the other influences ... (Read 72 times)

ap345

  • Hero Member
  • *****
  • Posts: 537
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

  • Sr. Member
  • ****
  • Posts: 346
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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Geopolitical Change of 20th-Century Europe Geopolitical Change of 20th-Century Europe
Desertification and Climate Change Desertification and Climate Change
Demographic change and the effect on people social, and economic life Demographic change and the effect on people social, and economic life
Global Climate Change Global Climate Change
Historical Climate Change "تغير المناخ التاريخي" Historical Climate Change "تغير المناخ التاريخي"
Capital-Biased Technological Change Capital-Biased Technological Change
Video: Bone cells and tissues - tissue composition and cells

For a complete list of videos, visit our video library