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Type of the goods on which it is studied to calculate degree of flexibility of demand on
To the relation to the cores influencing it to factors.
Thus, this method is substantially applied as
The tool of the qualitative analysis allowing visually to display the tendency
Changes of demand under the influence of various factors.
The analytical method allows to analyse developed tendency
Demand for the basic goods and to predict a situation on prospect. Such
In the image, it is applied as the tool preliminary and
The subsequent analysis.
It is necessary to distinguish change of size of demand and demand change. Size
Demand it is expressed in concrete quantity indicators of production, on
Which demand is shown. Its change arises under the influence of the price.
Graphically it means point movement on a curve of demand without change
Positions most the curve. For example, on the schedule it is shown that at reduction of price
With it1 to it2 the size or demand volume increases with Q1 to Q2 (fig. 9.4).
Fig. 9.4. Change of size of demand and demand
Influence on demand, besides the price, other factors calls line shift
Demand from DD to D1D1 in such a manner that at price preservation at level it1
There is an increase in demand from size Q1 to Q3, and at reduction of price to
Level it2 demand increases with Q2 to Q4. Position of demand, which is displaced and
Is called as demand change.
The major property of demand consists in return or negative
Dependences between the price of production and demand for it at an invariance of all
Other factors. This dependence is called as the demand law. In other words,
With other things being equal reduction of price leads to size increase
Demand and on the contrary, price growth conducts to decrease in size of demand for production.
At the heart of the demand law the psychology of the buyer, which lies, first,
Consists in that great volumes of the concrete goods are bought on more
To the low price, than on the high. Acknowledgement of it is the demand curve.
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