Wednesday, March 21, 2012

Economics: The Determinants of Demand

Another of the blogs we read but don't link to often enough
From Economists Do It With Models:

The Most Interesting Law Of Demand?
Guess who learned how to use a meme generator and knows that demand curves slope downwards…

Actually, that one was from the Cengage Learning Facebook page, but I’m apparently one to take an idea and run with it (or beat a dead horse, depending on your perspective). We all know that there are plenty of determinants of demand other than price, so I made a few more graphics.
Income is an important determinant of demand, and we can have normal goods

Prices of related goods are also relevant factors for demand, and we can think about substitutes