Economics HL
Economics HL
4
Chapters
117
Notes
Unit 1 - Intro To Econ & Core Concepts
Unit 1 - Intro To Econ & Core Concepts
Unit 2 - Microeconomics
Unit 2 - Microeconomics
Understanding Demand Insights Into Buyer Behavior
Understanding The Law Of Demand Why Price Impacts Purchase
Understanding The Demand Curve Price vs. Quantity
Understanding Non-Price Determinants Of Demand Shifts
Understanding Shifts Vs. Movements In The Demand Curve
Understanding The Definition Of Supply In Business
The Law Of Supply: Price, Production, & Profit Dynamics
Unlocking The Mysteries Of The Supply Curve
Understanding Non-Price Determinants of Supply Shifts
Understanding Movements & Shifts In The Supply Curve
Understanding Market Equilibrium: The Balance of Demand & Supply
Understanding Market Equilibrium Shifts A Deep Dive
Understanding The Invisible Hand: The Price Mechanism's Role
Unlocking Consumer Surplus The Secret Behind Pricing
Unlocking Consumer Choices: Delving into Behavioural Economics
Unlocking Choices The Power of Behavioral Economics
Business Goals Beyond Profit CSR, Market Share & Growth
Understanding Income Elasticity of Demand (YED)
Understanding Price Elasticity of Supply Key Determinants Over Time
PES Analysis: Primary Commodities Vs. Manufactured Products
Why Governments Intervene in Markets: Top Reasons Explained
Indirect Taxes Impact & Analysis for Consumers and Producers
Understanding Government Subsidies Benefits & Impact
Understanding Price Ceilings Impact & Implications
Understanding Price Floors Impact & Implications in Markets
Market Mechanisms Achieving Social Efficiency Or Failing
Understanding Externalities Causes & Consequences in Economics
Understanding Pigovian Taxes: The 'Polluter Pays Principle'
Understanding Public Goods: Characteristics & Examples
Adverse Selection The Hidden Challenge in Markets
Moral Hazard The Hidden Risks of Asymmetric Information
Addressing Asymmetric Information Government Vs. Private Responses
Unraveling Economic Profits From Basics To Market Structures
Understanding Structure-Conduct-Performance The Power Of Market Dynamics
Understanding Perfect Competition Decoding Market Dynamics
Unraveling Allocative Efficiency in Perfect Competition
Monopoly Market Dynamics Insights Into Power & Profits
Understanding Monopoly Firms Efficiency & Market Power
Understanding Entry Barriers: Types & Implications
Unlocking The Secrets Of Oligopoly Markets
Unlocking Monopolistic Competition Its Dynamics and Impact
Benefits Of Big Firms: Monopoly Power & Market Dominance
Tech Giants' Abuse Of Monopoly Power: A Deep Dive
Understanding Price Elasticity of Demand (PED)
Unlocking Income Elasticity Of Demand: What It Means For You
Comparing PES: Primary Commodities Vs. Manufactured Products
Unmasking Monopoly Firms: Impacts On Society
Unit 3 - Macroeconomics
Unit 3 - Macroeconomics
Unit 4 - The Global Economy
Unit 4 - The Global Economy
IB Resources
Unit 2 - Microeconomics
Economics HL
Economics HL

Unit 2 - Microeconomics

Understanding Non-Price Determinants Of Demand Shifts

Word Count Emoji
693 words
Reading Time Emoji
4 mins read
Updated at Emoji
Last edited on 5th Nov 2024

Table of content

Non- price determinants of demand (A.K.A. demand shift factors)

These are the elements, excluding the product's own price, that affect how much of a product people want to buy. Think of these as the puppeteers behind the scenes, pulling the strings that move the demand curve left or right.

 

Now, when the demand increases, the curve shifts to the right. Imagine it like the demand curve doing a 'moonwalk' to the right on the graph! More quantity of goods is wanted at every price. On the contrary, when demand decreases, the demand curve shifts to the left, kind of like it's 'side-stepping' to the left, indicating less demand at each price.

Non-price determinants include

Income: As income goes up, you're feeling richer and start buying more, causing demand to rise for normal goods. Kind of like when you get your first paycheck and splurge on things you've always wanted.

 

However, if we're talking about 'inferior goods' (not necessarily 'bad', just less preferred or lower quality), an increase in income leads to decreased demand. Why? Because now you can afford to buy something better. Imagine trading up your instant ramen diet to dine in a fancy restaurant!

 

Price of Related Goods: This can be tricky. Goods can be 'substitutes' or 'complements' to each other. If Pepsi and Coke are having a price war and Pepsi's price goes up, you'd likely buy more Coke as a cheaper substitute. It's like choosing between two rival football teams' merchandise!

 

If we talk about complement goods like coffee and sugar, imagine if the price of coffee goes up, you might cut back on your coffee consumption, and therefore you'd also need less sugar.)

 

Tastes and Preferences: The 'cool' factor. What's in trend affects demand too. If quinoa becomes the latest health fad, more people will want to buy it. Imagine if BTS suddenly started promoting a certain brand of sneakers. The demand would skyrocket, right?

 

 Expectations of Future Price Changes: If you know the price of a new phone is going to drop next month, would you buy it now or wait? Most would wait, right? This means demand decreases now but would increase later when the price drops.

 

 Number of Consumers: This one is pretty straightforward. More consumers = more demand. If a city's population suddenly increases, the demand for local goods and services would likely go up too.

 

So that's it! Now you know that the demand isn't just about prices but also involves income, related goods, tastes, price expectations, and the number of consumers. Remember, it's not just about money but also about what you want, what you expect, and how many of you there are!

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IB Resources
Unit 2 - Microeconomics
Economics HL
Economics HL

Unit 2 - Microeconomics

Understanding Non-Price Determinants Of Demand Shifts

Word Count Emoji
693 words
Reading Time Emoji
4 mins read
Updated at Emoji
Last edited on 5th Nov 2024

Table of content

Non- price determinants of demand (A.K.A. demand shift factors)

These are the elements, excluding the product's own price, that affect how much of a product people want to buy. Think of these as the puppeteers behind the scenes, pulling the strings that move the demand curve left or right.

 

Now, when the demand increases, the curve shifts to the right. Imagine it like the demand curve doing a 'moonwalk' to the right on the graph! More quantity of goods is wanted at every price. On the contrary, when demand decreases, the demand curve shifts to the left, kind of like it's 'side-stepping' to the left, indicating less demand at each price.

Non-price determinants include

Income: As income goes up, you're feeling richer and start buying more, causing demand to rise for normal goods. Kind of like when you get your first paycheck and splurge on things you've always wanted.

 

However, if we're talking about 'inferior goods' (not necessarily 'bad', just less preferred or lower quality), an increase in income leads to decreased demand. Why? Because now you can afford to buy something better. Imagine trading up your instant ramen diet to dine in a fancy restaurant!

 

Price of Related Goods: This can be tricky. Goods can be 'substitutes' or 'complements' to each other. If Pepsi and Coke are having a price war and Pepsi's price goes up, you'd likely buy more Coke as a cheaper substitute. It's like choosing between two rival football teams' merchandise!

 

If we talk about complement goods like coffee and sugar, imagine if the price of coffee goes up, you might cut back on your coffee consumption, and therefore you'd also need less sugar.)

 

Tastes and Preferences: The 'cool' factor. What's in trend affects demand too. If quinoa becomes the latest health fad, more people will want to buy it. Imagine if BTS suddenly started promoting a certain brand of sneakers. The demand would skyrocket, right?

 

 Expectations of Future Price Changes: If you know the price of a new phone is going to drop next month, would you buy it now or wait? Most would wait, right? This means demand decreases now but would increase later when the price drops.

 

 Number of Consumers: This one is pretty straightforward. More consumers = more demand. If a city's population suddenly increases, the demand for local goods and services would likely go up too.

 

So that's it! Now you know that the demand isn't just about prices but also involves income, related goods, tastes, price expectations, and the number of consumers. Remember, it's not just about money but also about what you want, what you expect, and how many of you there are!

Unlock the Full Content! File Is Locked Emoji

Dive deeper and gain exclusive access to premium files of Economics HL. Subscribe now and get closer to that 45 🌟

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