Linear Demand Equations – Shifts in Demand (changes in the ‘a’ and the ‘b’ variables)

In our 3rd lesson on linear demand equations we’ll learn how a change in a non-price determinant of demand can cause the ‘a’ variable to change and a shift inwards or outwards of the demand curve along the quantity axis.

In our final lesson on linear demand equations we’ll look at how a change in a non-price determinant of demand can cause the demand curve to pivot along the quantity axis, changing the ‘b’ variable, resulting in either an increase or a decrease in the responsiveness of consumers to price changes.

Linear Demand Equations – part 3

Linear Demand Equations – part 4

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