CLASS ACTIVITY
Group presentation:
Shifts of the Demand Curve
In this mini presentation our group was tasked with showing the change to the demand curve of a product when there is a change in price of another product. When the price of a product increases, its opportunity cost increases as well because consumers have to give up more benefits in order to purchase the product. As a result, more customers will shift to another product. What we see in the graph actually shows an increase of demand in product A when price of product B increases. This proves that these goods are substitute good.
0 comments:
Post a Comment