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How does the market demand curve change (as a function of marketing expenditure) during recession?
Weegy: A demand curve shows the quantity demanded as a function of price, other things equal. Generally, the demand curve slopes downward. [ Changes in price are represented by movements along the demand curve, while changes in other factors, such as income, the prices of related products, and advertising, are represented by shifts of the entire demand curve. The market demand curve is the horizontal summation of the individual demand curves of the various buyers. For a normal (inferior) product, demand is positively (negatively) related to changes in buyer’s income. Two products are complements (substitutes) if an increase in the price of one causes a fall (an increase) in the demand for the other. Buyer surplus is the difference between a buyer’s total benefit from some quantity of purchases and his or her actual expenditures. Changes in price affect buyer surplus through the price changes themselves as well as through changes in the quantity demanded. Package deals consist of a fixed quantity of the item for a fixed payment. Two-part tariffs consist of a fixed payment and a charge based on usage. These are two ways by which sellers can extract surplus from buyers. ] (More)
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Asked 7/27/2013 8:01:51 PM
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How does the market demand curve change (as a function of marketing expenditure) during recession?
Weegy: How does the market demand curve change (as a function of marketing expenditure) during recession? Answer: Market demand will shift if there is a change in demand while there will only be a new equilibrium established given a new price. [ During a recession, the overall demand will fall for most products. This will depend on the product elasticity. The less elastic an item is, the less demand impact it will have during a recession. Such include oil and water. However, in general, a demand curve will shift closer to the axis or closer to 0 on the quantity scale to show the diminishing demand. ] (More)
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Asked 7/27/2013 8:03:59 PM
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