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What factors can shift the demand curve in a market?

This can include: advertising, complementary goods, amount of substitutes avaible, income and quality. Just to name a few.
CM
Answered by Callum M. • Economics tutor
2435 Views

Following Teresa May's Brexit speech, the UK exchange rate in terms of euros depreciated from 1.13 to 1.08. If a firm sells 20000 units at 4 euros per unit, what is the difference in the firms revenue following the change in the exchange rate?

Total sales abroad: 20000 x 4 euros = 80000 euros Pound amount = Euro amount x ER Before ER change: 80000 x1.13 =90400 pounds After ER change: 80000 x 1.08= 86400 pounds 864-904 = -4000 pounds Therefore, rev...
JR
Answered by Josh R. • Economics tutor
2327 Views

Why does the demand curve slope downwards?

It is assumed that if the price of a good falls, more people will be able to afford the good and therefore more people will want to buy the good when the price is lower. Therefore, as price falls the quantit...
TC
Answered by Tom C. • Economics tutor
2152 Views

What's the connection between the PPC and the AD/AS model?

Both the PPC and AD/AS model demonstrate an economy and show a potential output as well as a real output. A shift in LRAS in the AD/AS model shows that the potential output of a nation increases as a result ...
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Answered by Sara K. • Economics tutor
15942 Views

Using real life examples, explain the differences between the different market structures.

There a four types of market structures. A monopoly is where one firm dominates the market, it is characterised by high entry and exit barriers, high sunk costs and a possibility for supernormal profits. An ...
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Answered by Fiyin A. • Economics tutor
16118 Views