Please help me to answer the questions below:)

awrmwer Edd-tiff??? Turn to the section on market demand in an introductory microecono mics textbook. What you're most likely to nd is a detailed treatment of how you should represent the effect of a change in price compared to how to represent the effect of other determinants of demand. This is important. of course. Often what is missing from the textbooks. however, is any sense of what are those other determinants of demand. Yet knowing why demand might change is critical for being able to apply the perfectly competitive market model. be it to explain a movement in prices that has occurred or to predict rture prices. Hence. it's worth trying to identify these mysterious other factors that can change market demand. A bit of investigation reveals a wide variety of potential determinants of demand. As a starting point. factors that generally receive attention in textbooks1 such as the prices of substitutes and complements1 and consumers incomes1 do appear to affect demand. An analysis of increasing demand for camels in the Indian state of Rajasthan concluded that as 'the cost of running gasguzzling tractors soars. eventeed ungulates [camels] are making a comeback 'lt's excellent for the camel population if the price of oil continues to go up because demand for camels will also go up." says [lse KohlerRollefson of the League for Pastoral Peoples' [Johnson EGGS]. What is being suggested is that the increasing price of running tractors [due to higher oil prices} is causing an increase in demand for camels. which are a substitute for tractors on farms. This is exactly what would be predicted in any textbook that an increase in the price of the substitute. tractors. will cause an increase in demand for camels. Alternatively. changes in demand for a product may be explained by changes in the demand for complementary goods. One example is the effect of internet retailing on demand for parcel postage services. Such is the increase in demand for air freight generated by online shopping that l[Ilantas added an extra Boeing T3? freighter to its fleet to transport parcels for Australian Post [Freed El}. {Jther examples are the decrease in demand for autoteller banking machines as we use less cash [Yeates 213117}; growth in demand for student accommodation with increasing numbers of international students at Australian universities [L'ummins 2131?}; and more demand for ocean going cruise vessels in response to a boom in the cruise industry {The Economist 2015a}. Consumer incomes also matter for demand. In China. a growing middle class has meant higher expenditure on items such as international travel and premium goods and cosmetic products [The Economist Elb. 2016]. The mid-El saw sales of cosmetics and sportswear goods growing by over it] per cent per year; and an extra ll] million overseas trips being taken each year. Provided that these are all regarded as 'normal' goods. this is again what textbooks would tell us - that an increase in income will increase demand for international travel and premium goods. Many other factors can affect demand. ne is what economists call a 'taste Change'. This just means that consumers' preferences for a good or service can alter, and that this will cause a change in demand. A possible reason why consumers' tastes or preferences may change is fashion. Take the examples of the recent rise in demand for vinyl records and collectable trainers and sneakers [The Economist. El'r'a. EDlTb]. {Jr think about the growth in demand for gluten-'ee food, fourwheel drive vehicles, and tourism to sites where Australian soldiers once fought, all of which largely seems driven by fashion. Tastes may also change because consumers discover new information about a product that causes them to value it differe ntly. An example is the growth in demand for bottled water in China. It has been suggested that 'Hygiene and health concerns have stoked demand' [The Economist EDISCT. WHAT DETERMINES DEMAND? Demand for a product can be affected by the introduction of new substitutes. To the extent that a new product better matches what some consumers want, we'd expect those consumers to switch from the product they presently buy; in other words. The availability of new substitutes would be expected to decrease demand for existing products. Some recent examples are declining numbers of visitors to national parks due to a growing range of alternative recreation opportunities; the switch by children from time spent reading to playing computer games; and the impact of Uber and other ride - sharing services on the demand for public transport (The Economist 2006, 2013, 2018). Apart from the price paid to the supplier to buy the product, there may be other aspects of the opportunity cost of consuming a product that affect demand. An example is the cost of the time spent buying a product or consuming it. It would be expected that the scope to buy airline tickets on the internet should increase demand, because of a reduction in the amount of time spent buying the tickets. Or take the example of cigars. With bans on smoking in indoor venues, demand for cigars has shifted away from full-size cigars, which take at least 45 minutes to smoke, to minis, which only require three to five minutes to puff through - 'a better Choice for those forced out into the cold from formerly ash-friendly venues such as pubs and gentlemen's clubs' (The Economist 2011) Demand and supply The model of a perfectly competitive market involves three main elements: a representation of the buyers in the market, referred to as market demand a representation of the suppliers in the market, referred to as market supply a rule for determining the market outcome from trade between buyers and sellers, known as equilibrium. Market demand and market supply are used to represent the aggregate behaviour of (respectively) all buyers and all suppliers in a market. An important distinction is made between the effect of price and the effect of other influences on the behaviour of buyers and suppliers. The 'Law of demand' specifies that there is an inverse relation between price and quantity demanded. and the 'Law of supply' speci?es that there is a positive relation between price and quantity supplied. Graphically, these Laws are represented in the demand and supply curves, which show the relation between price and (respectively) the quantity demanded and quantity supplied of a product. Changes in the price of a product are said to cause 'movements along the curve", as shown for the case of demand in Figure I. Other possible influences on demand include the price of substitute or complementary products, consumers' incomes and size of population. Graphically, changes in any other determinant of demand (apart from price) are represented as causing an increase or decrease in demand at each given price, so that there is a shift in the demand curve. For example, where consumers' incomes increase (and the product we are considering is a normal good), it is assumed that demand will increase. This is represented by an outward shift of the demand curve, showing that at any given price a larger quantity of the product is now demanded. This is illustrated in Figure 1.WHAT DETERMINES DEMAND? Effect of increase in consumer income Price PA Demand curve 2 Effect of price increase Demand curve 1 Quantity Figure 1. Movement along and shift in the demand curve Other possible influences on supply are the cost of production and number of suppliers. Changes in any other determinant of supply (apart from price) are represented as causing an increase or decrease in supply at each given price, so that there is a shift in the supply curve. Conclusions Demand for goods and services can be influenced by many factors. Sometimes these are the types of factors described in your textbook, such as changes in the price of substitute or complementary goods, or Changes in consumer incomes. But there are many other influences that may matter, such as changes in consumer tastes or preferences, changes in the opportunity cost of buying or consuming a good, and changes in the availability of substitutes. Tasks 1. How would you represent each of the following? a. The effect on demand for furniture produced by a furniture company changing its products from being already assembled to requiring buyers to assemble them. b. The effect of extra road congestion on demand for travel by train. c. The effect on demand for texting of the increased popularity of TV shows with viewer voting such as The Voice. d. The effect on demand for DVDs of TV shows if the same TV shows become available from streaming services. 2. Can you think of factors apart from those described in the examples above that might affect demand