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A demand is usually seen as artificial when it increases consumer utility very inefficiently; for example, a physician prescribing unnecessary surgeries would create artificial demand. [3] Government spending with the primary purpose of providing jobs (rather than delivering any other end product) has been labelled "artificial demand". [4]
For example, for a certain demand level for train commuting, reserved tickets may be sold to those who like to guarantee a seat. Those who do not reserve seating may have to commute while standing. As more reserved seating are sold, the crowding in the non-reserved railroad car is reduced, and the likelihood of finding a seat in the non ...
First, the demand for a good is the same for a given price level so the demand curve does not change. On the other hand, the tax makes the good in fact more expensive to produce for the seller. This means that the business is less profitable for a given price level and the supply curve shifts upwards.
Just as improved workplace tools result in an increased expectation of productivity, so does the increased availability of time result in an increase in demand for a service. [22] [40] [41] Research articles often examine increasingly convenient and more rapid modes of transportation to determine the rebound effect in energy demand. Because ...
The demonstration effect has been observed as a natural consequence of tourism. One study argues that the demonstration effect can be broken down into four forms: exact imitation, deliberately inexact imitation, accidental inexact imitation, and social learning. [3]
The service provider must deliver the service at the exact time of service consumption. The service is not manifested in a physical object that is independent of the provider. The service consumer is also inseparable from service delivery. Examples: The service consumer must sit in the hairdresser's chair, or in the airplane seat.
To increase net savings requires earning more than is spent—contrary to Say's law, which postulates that supply (sales, earning income) equals demand (purchases, requiring spending). Keynesian economists argue that the failure of Say's law, through an increased demand for monetary holdings, can result in a general glut due to falling demand ...
For almost all products, the demand curve has a negative slope: as the price increases, quantity demanded for the good decreases. Giffen goods are the exception to this general rule. Unlike other goods or services, the price point at which supply and demand meet results in higher prices and greater demand whenever market forces recognize a ...