ib-economics-quantitative

Have you fully labelled the axes?Explaining changes in “a” and “b”If the value of „a‟ in the demand function changes, then the demand curve shifts to the left orthe right, parallel to the original curve.If the demand curve shifts to the right, then it means that there has been a change in one ofthe non-price determinants of demand that has made the product more attractive to theconsumer and so more is demanded at each price.If the demand curve shifts to the left, then it means that there has been a change in one ofthe non-price determinants of demand that has made the product less attractive to theconsumer and so less is demanded at each price.If the value of „b‟ changes in the demand function, then the slope of the demand curve willchange. The slope of the demand curve is „– b‟. If „b‟ gets smaller, then the slope of thecurve gets steeper and if „b; gets bigger, the curve will be flatter.Produced by Ian Dorton & Jocelyn Blink Page 5