147k views
3 votes
If consumers are more willing and able to buy an item because a nonprice determinant has changed, what happens to the quantity demand?

1 Answer

3 votes

Final answer:

When a nonprice determinant changes, indicating that consumers are more willing and able to purchase an item, there will be a shift in the demand curve, which can either increase or decrease the quantity demanded at every price point.

Step-by-step explanation:

If consumers are more willing and able to buy an item because a nonprice determinant has changed, the quantity demanded at every price point changes, which results in a shift of the demand curve. This can happen for several reasons, such as changes in consumer preferences, expectations about future prices, or changes in the price of complementary goods. For example, if the price of golf clubs goes up, the demand for complementary golf balls decreases because they are used together. Similarly, if people expect the price of coffee to rise in the future, they might buy more now, leading to an increase in demand.

The response of the demand curve shows that there are numerous factors affecting demand beyond just the price of the good itself. These factors cause the curve to shift to the left or right. A shift to the right indicates an increased demand at every price (more is demanded at every price), and a shift to the left indicates a decrease in demand.

User Toadead
by
7.9k points