Advanced level 2023 northwest regional mock economics 3
Advanced level 2023 northwest regional mock economics 3
The Law ofdemand applies to all customers. There is anegativerelationship chanaeTrtii»
quantity demanded, ceteris paribus. As tlieprice ofa commodity increases ?. ® For C
consumermoves upwards H alongthe demand curve and buys a smaller quan 1 y P ‘
instance 8 FCFA to 10FCFA,then a consumer buys only 1 unit
,ifthe priceofagoodincreases from
permonthdown from4 units…. .
There is a positive relationship between price and the quantity supplied ceteris pari us. s e price of
a commodity increases and nothing else changes, the producer moves upwaid along the individual
supply curve and produces a larger unit.For instance,if the price increases from 8 FCFA to 10 FCFA,
the producer produces 4 units per month up from I unit…
The key factor in determining the price elasticity of demand for a particular product is the availability
of substitutes. The availability of substitutes increases over time, so the longer the time consumers
have to respond to a price change,the more clastic the demand…”
Source: Adopted from Keonomics,Principles, Applications and’fool,
