Question

Expalin how the following factors effect market demand curve? (a) number of buyers.(b) distribution of income and wealth.​

Answer 1

Answer:

#a number of buyers# if no.of buyers buying the same product it affects the market demand .Example the cost of the product may rose up to its normal cost .it effects normal people and they not able to buy them or buy them in less quantity

#distribution of income and wealth#no. of changes in income distribution are inflation (including level, variability, and rate of change), public consumption, external position (both levels and changes), level of the real exchange rate, and the price ratio of investment/consumption goods.

Explanation:

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Answer 2

There are several factors that affect the supply and the demand level in the market.All the examples mentioned in the question are examples of market fluctuations.

Explanation:

1. A change in the number of buyers can affect the overall demand in the market.An increase in the number of buyers or consumers will increase the total consumer demand for a product or service and the demand curve will shift right and the reduction in number of buyers will reduce market demand causing a leftward shift of the market demand curve.
2. Income and wealth have a positive relationship with the market demand.An increase in both will increase the individual as well as market demand and vise versa.More income and wealth will induce consumers or buyers to consume more thereby raising the demand for products and services.This will cause a rightward shift of the market demand curve.A decrease in income and wealth would reduce the individual and market demand causing a leftward shift of the market demand curve.