Demand is a powerful force in a free market. In three to four sentences, explain some of the factors that cause changes in demand and why it is important for consumers to understand these changes.

Changes in factors like average income and preferences can cause an entire demand curve to shift right or left. This causes a higher or lower quantity to be demanded at a given price. Demand curves relate the prices and quantities demanded assuming no other factors change. It is important for consumers to know this information, because it is crucial for them to know what they can afford and can't afford.

mahak08 mahak08 · Answer 2 · 2021-11-08T17:19:12+01:00

A consumer's desire to purchase products or services, as well as their willingness to pay a price for them, is referred to as demand in economics.

A increases in the cost of a service or product will lower demand if all other variables remain constant, and vice versa.

Factors that cause changes in demand :

Changes in characteristics such as average income and preferences can cause a whole demand curve to move right or left.

As a result, a higher or lower quantity is demanded at a certain price.

Demand curves are connected to prices and quantity demanded if no other factors change.

Consumers should be aware of this information since knowing what they can and cannot afford is crucial.

For more information about factors that cause changes in demand refer to the link:

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