Question

I need an example of a time when behavior changes in response to changes in price....

I need an example of a time when behavior changes in response to changes in price. It needs to include what market forces caused the price change (i.e. was it a market demand effect, if so what type?). I also need this behavioral change shown by a graph.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Behavior is changed when the price is changed. For an example, if the price of substitutes increased people's demand is decreased. Suppose the cost movie ticket is increased then people want to watch a movie in the home instead of going to the costly movie theatre. That is demand for DVD will be increased. Another example if the price of tea is increased people want to substitute it with coffee which is cheaper than tea now. That is demand for tea will be decreased.

Here in this above graph demand is increased due to increase in the price of substitution goods. Demand curve shifts to the right from AD1 to AD2. as a result price is increased to P2 and quantity is increased to q2.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On Sundays, what time is the best to post Statistics questions if I need a response...
On Sundays, what time is the best to post Statistics questions if I need a response within an hour? Please help because I have work to do today and am wondering when is the best time.
Discuss an example of a time when one of the six influences on perception, caused you...
Discuss an example of a time when one of the six influences on perception, caused you to misperceive someone or something in a work/personal situation. what could you have done differently? Also, discuss a time when you were misperceived by someone else and which of the influences on perception may have caused this misunderstanding. What could you do to change that misperception? The six influences are physiology, expectations, age, culture, cognitive abilities and self.
What is your personal beliefs about the nature of human behavior, the basic tenets of human...
What is your personal beliefs about the nature of human behavior, the basic tenets of human needs and the principles and approaches of counseling that you believe to most effectively address such behavior and needs. Include your beliefs about the therapeutic relationship, personal strengths and characteristics that you bring to such a relationship and ethical guidelines that you consider important to adhere to within such a relationship. Your thoughts should make sense together as a whole. For example, although the...
What does it mean if price of stock doesn’t change too much only few changes across...
What does it mean if price of stock doesn’t change too much only few changes across the year ?? Is that good for investment ?? Also what is an announcement of a stock’s corporation and if I found some in the stock market are they important when I want to comment about the slight change of stock’s price???
1. The effect that measures only the impact of a relative price change holding utility constant...
1. The effect that measures only the impact of a relative price change holding utility constant is called the ____________. a) substitution effect b) relative price effect c) income effect d) utility constant effect 2. If the demand for canned meat decreases as real income increases, this means that canned meat is a/an ________. a) normal good b) basic good c) consumer good d) inferior good 3. A Giffen good is a good that is ______. a) a normal good...
As a voter I do think about the state of the economy when selecting a candidate...
As a voter I do think about the state of the economy when selecting a candidate for office. The economy effects my family, my small business, and my community and resources. With the COVID-19 virus our economy has taken a turn and right now we are in what I would call limbo. So those normal concerns that I have when it comes to the economy are still there I now have a few new concerns, like how will the loss...
2. When counseling children under the age of 10 for possible dysfunctional behavior, should it be...
2. When counseling children under the age of 10 for possible dysfunctional behavior, should it be mandatory for parents to also be assessed and at least briefly be involved in counseling as well either with the children or individually? I believe if the children are going through counseling, then the parent should as well. The parent needs be aware of the situation and how they can best handle their children. They need to be informed so they can help the...
Hi There! I need short and clean answers from these questions and please make sure your...
Hi There! I need short and clean answers from these questions and please make sure your writing is clear and understandable if you decide to write the answer. The answer can be simple, so I can understand it. Thank you! 1-Using the supply and demand model, graphically show the effect of each of the following changes on the equilibrium price and quantity in the market for bacon: -A decrease in the price of sausage links (explain any assumptions you make)...
5. Changes in estimates are not carried back to adjust prior years. Explain how changes in...
5. Changes in estimates are not carried back to adjust prior years. Explain how changes in estimates are accounted for in the current year? 6. A change in accounting principle requires that the cumulative effect of the change for prior periods be shown as an adjustment to beginning retained earnings of the earliest period presented. Explain what this means? 7. A required disclosure in the income statement when reporting the disposal of a component of the business includes reporting earnings...
Supply and Demand. I need to write a forum on economics using the manager’s perspective on...
Supply and Demand. I need to write a forum on economics using the manager’s perspective on how to maximize profits using supply and demand. Using at least 75 words to explain. This is some of the chapter on supply and demand. Supply and demand analysis is a qualitative tool which, empowers managers by enabling them to see the “big picture.” It is a qualitative forecasting tool you can predict trends in competitive markets, including changes in the prices of your...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT