Because we held everything else equar - we didn't
allow any of these factors to change -- when we drew
the demand curve for apples.
Sarah, Economics Tutor
Exactly! We did not allow any of these other factors
to change.
So, if we change any factor other than the price of
apples, we draw a whole new demand curve -- since
other things aren't equal any more!
That researcher would still have to ask many people
in the economy about different quantities demanded
at different prices, but now it would be at a different
income, or at a different price of oranges, or different
preferences, or whatever.
The result is a new demand curve, shifted left or
right.
If the demand curve shifts to the right, this would
represent a(n):
increase in demand
decrease in demand
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