Ceddia Taylor

11/16/2022
Micro-Economics

(a)
i. Demand - This is the total number of goods and services purchased over a specified
period of time. / This is a consumer's desire or willingness to purchase goods over a given
period of time.
ii. Supply - The total number/amount of goods and services available/offered for sale.

(b) briefly explain a change in demand vs a change in quantity demanded

A change in quantity demanded is represented by a movement along the demand
curve which is caused by a change in the price of a product. A fall in price would result in an
increase in quantity demanded which is termed an extension of the demand curve. And an
increase in price would result in a decreased quantity demanded which is termed a
contraction in demand. While a change in demand is a shift in the demand curve and is
caused by any other factor other than price such as income, taste, population, and price of
substitute goods. The demand curve shift to the left or right.

(c)ii- Identify the equilibrium price and state the quantity of digital cameras traded at that
price.
The equilibrium price is $150 and 30 digital cameras are being traded at that price.

(D)i - List 5 factors that will influence the demand for digital cameras.
- Increase or decrease in the population of people who use digital cameras
- The income of people who are interested in digital cameras
- Taste
- The price of other forms of cameras
- The expectation of future conditions

ii - Explain how FOUR of the factors listed above (d)(i) will affect the demand for digital
cameras

Population - The increase or decrease in the population of people interested in digital

cameras in a specific area will affect demand if there is an increase the demand will go up
and if there is a decrease the demand will go down. The population may be affected by
crime, age, migration and etc.

Income - This will affect demand if the persons interested in digital cameras income are low
or high this will determine the amount of cameras they are able to purchase.

The price or availability of camera components - This will affect the demand if the extra
components of the camera such as charger, memory card and etc. are expensive or in short
supply. People will purchase fewer digital cameras and if components are cheap and in
adequate supply this will increase demand.
The expectation of future conditions - This deals with the expectation of future prices, rather
they will increase or decrease, If prices are high today and consumers expect that they will
be lower tomorrow more of the commodity will be purchased tomorrow rather than today.