Question

1. Describe a time when you changed the quantity demanded for a

product or service in response to a change is price.
2. Describe a time when you changed the demand for a product or
service in response to a non-price determinant of demand (TRIBE).

Answer 1

Answer: See explanation

Step-by-step explanation:

Demand means the amount of goods and services that a particular individual wants to purchase at a particular price and at a particular place.

Factors which affect demand include price. When price increases, the demand for a good or service reduces and vice versa.

Other price factors that affect demand include taste, fashion, weather, consumer's income etc.

1. There was a particular time that I wanted to buy a pen which costs $2 each. I wanted to buy 5 pens which would be $10. When I got to the stationary store, I was informed that the pen was now $2.50 each. Due to this, I could only buy 4 pen. This shows that due to an increase in price, the quantity demanded of pen that I could buy was reduced.

2. My pay at my workplace got increased from $980 to $1100. Due to these increase in my income, I increased the quantity demand for my food items as I could now buy more food items because my income has risen.