An increase in income of the people raises the demand of products. Identify the business environment?
Answers
Answer:
By the end of this section, you will be able to:
Identify factors that affect demand
Graph demand curves and demand shifts
Identify factors that affect supply
Graph supply curves and supply shifts
The previous module explored how price affects the quantity demanded and the quantity supplied. The result was the demand curve and the supply curve. Price, however, is not the only thing that influences demand. Nor is it the only thing that influences supply. For example, how is demand for vegetarian food affected if, say, health concerns cause more consumers to avoid eating meat? Or how is the supply of diamonds affected if diamond producers discover several new diamond mines? What are the major factors, in addition to the price, that influence demand or supply?
Explanation:
Hope its help you ✅ ✅ ✅
Mark brainilist please
Answer:
An increase in income will cause an outward shift in demand if the good or service assessed is a normal good or a good that is desirable and is therefore positively correlated with income. The demand curve for a good will shift in parallel with a shift in the demand for a complement.