Asymmetric information
Of the two parties, either party will have more information. As a result, he will benefit more than the other party. Generally, when selling a product, the seller has more information than the buyer.
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Market disequilibrium | Excess Supply | Excess demand
Reasons For Shifting In The Demand Curve
There are some reasons for shifting in the demand curve
Income: when income changes , demand curve also changes.
For Normal Goods :
When income increases, the demand for normal goods increases and when income decreases, the demand for normal goods decreases. For this reason, when income increases, the demand curve shifts to the right and when income decreases, the demand curve shifts to the left for normal goods.
In the case of substitute goods, when the price of one goods increases, the demand for the other will increase, then the demand curve will shift to the right, and when the price of one decreases, the demand for the other will decrease, then the demand curve will shift to the left.
In the case of complements goods, when the price of one goods increases, the demand for the other will decrease, then the demand curve will shift to the left , and when the price of one decreases, the demand for the other will increase, then the demand curve will shift to the right.
The goods that the consumer likes more will certainly consume more and the goods that consumers likes less will consume less.
MARKET SUPPLY
Discuss about normal goods ,inferior goods , substitutes goods and complements.
Other things being equal,when the demand of a goods increases as income increases and the demand of a goods decreases as income decreases,then those goods are called normal goods.
Asymmetric information Asymmetric information refers to when two parties to a transaction do not have equal information . Of the two par...