A change in price for a particular good is the most common factor that would not shift the demand curve for beef, explains Tutor2U. In contrast, things that do influence the demand curve for items, such as beef, include: population, change in consumers' incomes or change in tastes and preferences.Know More
Tutor2U goes on to explain that a change in the price of beef does not result in shifting of the demand curve, because the demand curve defines a relationship of the quantity desired at various price points. However, increased prices of substitute goods such as chicken, pork or fish may shift demand away from substitute goods and towards beef, therefore shifting the demand curve for beef to the right towards an increased quantity desired.
Similarly, if the price of a complement to beef such as spices or toppings is increased, it can shift the demand curve for beef to the left, towards less beef being desired, explains North Carolina State University. An increase or decrease in consumer income can also increase or decrease demand for beef respectively. Similarly, if interest rates are changed that alter individuals' disposable incomes, it shifts the demand curve for various goods such as beef. Increases or decreases in consumer population affect the overall demand for a particular good such as beef at all price points.
Expectations about future income and prices can also shift the demand curve today; for example, if people expect price increases on beef in the future, the demand curve may shift to the right today, reflecting people's desire to buy beef before the price goes up.Learn more about Economics
The demand curve for a monopolist slopes downward because the market demand curve, which is downward sloping, applies to the monopolist's market activity. Demand for the monopolist's product increases as its price decreases. According to Boundless, an educational resource website, the downward sloping demand curve contributes to market inefficiency, which leads to excess production capacity and a loss of consumer surplus.Full Answer >
The equation used to calculate the demand curve is Q=q1+q2...+qn or Q=f(P). Quantity demanded is represented by the variable "Q" while "q1" or "qn" correspond to an individual demand curve. The expression f(P) indicates that quantity demanded is a function of price, or "P."Full Answer >
The downward slope of a demand curve is due to consumers being less willing to purchase expensive products. As the price increases, potential consumers are likely to buy competing products. They may also refrain from purchasing a similar product.Full Answer >
The price elasticity of demand is important because it illustrates the effect that a change in price has on the quantity demanded of a particular good. It may be perfectly elastic, perfectly inelastic or somewhere between the two.Full Answer >