What Are Some Loopholes For The Demand Curve Curves Of A Bus Ticket For My Own Car
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a) There are some loopholes for the demand curve sloping upwards. Sometimes higher prices could increase demand on certain products and services which would cause the demand curve to slope upward. The Giffen Good is one condition which refers to products/services where consumers reduce their consumption as their incomes rise. If my income rose and I use to ride a bus, I would most likely switch out a bus ticket for my own car. Higher prices increase demand, because a car represents a large proportion of my budget. Conspicuous Consumption is where consumers purchase luxury items because of the status that comes with it. These consumers might have higher demand for expensive items because of the status they want to achieve.
b) A labor supply curve shows the number of workers that are willing and able to work. A labor demand curve shows the number of people who are willing and able to hire these workers. No one will hire someone who costs more than they will make such as if someone is working $15 an hour and only can bring in an extra $5 an hour. Anything that changes either the amount of output workers can produce or the price of that output will shift the labor demand curve. An assumption is that the lower the wage the more workers you can hire, (Law of Demand), when wages fall demand falls as well with no income effect. The Law of Diminishing Returns is another assumption because the more a firm hires workers, each worker contributes less to additional output and revenue