Question
Asked Nov 6, 2019
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The price for a product might remain the same, or rise or fall over time. Regardless, over time people may purchase more of this product. Explain.

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Expert Answer

Step 1

The price for a product is determined at the intersection of the market demand for the product and the market supply of goods in the market. When the consumer consumes more of the commodity over the time regardless of the price of the commodity, it would result in the shift in the demand curve for the product in the market.

Step 2

The demand curve would shift in the economy when there is an increase in any of the non-price factors of demand. Since the consumer consumes more regardless of the price, it will also result in the demand curve shift. T...

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BusinessEconomics

Consumer demand theory

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