00:01
Explain the influence on demand, if there is any of the given changes.
00:09
A, a new, less expensive substitute good is introduced into the market.
00:15
The demand for the current good will decrease.
00:22
Since there's an alternative good that costs less money, people are going to buy that good, causing demand for it's one good, a, to decrease.
00:31
B, the price of a complementary good falls.
00:35
The price of a complementary good.
00:36
Is cost less money, then demand for the good we're in question is going to increase because the two go together.
00:44
So if i can buy more of the other one for cheaper, i'm going to buy more of this one as well.
00:50
See the price of a complementary good falls.
00:54
Demand is going to increase for the same exact reason.
01:01
The government opens up its borders to completely free immigration.
01:05
This is going to have no effect on demand because immigration, yes, there's more people that might be wanting products, but we don't know what they're going to want, but more to the point that this is not what we're talking about what we're talking about demand.
01:20
It's not a change in price, it's not a change in technology.
01:23
So no effect on demand.
01:25
E, the good in question becomes more popular with consumers.
01:29
This is an increase in demand.
01:32
So we're going to see demand increase.
01:34
Since it's more popular, we're saying that the demand is more.
01:38
F, the cost of producing the good rises.
01:42
This is not going to affect demand because in the way it's written, we're just saying the cost of producing the good rises, but we don't know how that is going to affect demand without knowing how that affects the price of the good.
01:59
G, there's an expectation of higher future prices.
02:03
And in this case, what would happen to current demand? current demand is going to increase.
02:10
If i think something is going to cost me more in the future, i'm going to buy more of it now...