Essay on Demand Shift

Document Type:Essay

Subject Area:Economics

Document 1

On the other hand, ability to buy a product means that one has the income or what is needed in order to get what he or she wants. A shift in the demand affects the rate of demand and the price of the goods or services offered. A shift in demand may either be increasing or decreasing. A decreasing demand happens when the demand moves upwards while a decrease in demand means that the demand moves downward. However, when talking about the shift in demand, it is not to imply that the quantity that is demanded by every buyer varies with the same amount. In the case of another ice cream seller, competition will increase since he or she has the same product and I would expect that the new ice cream seller will lower the prices so as to attract customers as his business picks up and be able to make some income.

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