Question

Could someone take notes and explain  for me from these pragraph with explantation. Thank you advance
las inferior Goods Firms producing inferior goods do not benefit from a boom- ing economy. One such example is the pawnshop industry, which suffered during the economic prosperity of the late 1990s and 2000, as fewer people swapped jew- elry and other items for cash to cover car payments and other debts. Although pawnshops have always suffered from a somewhat disreputable image, the strong economy provided an income effect that further hurt the business and caused many chains to incur large losses. . Dollar stores' sales increased during the 2007 recession and moderated only somewhat during the slow recovery. These stores experienced increases in the number of customers who traded down out of economic necessity and who could have gone elsewhere but were still exercising frugality. 30 Payday lenders also increased their business during the recession. Although these companies often charged interest rates of more than 500 percent on their loans, they developed strategies to lure customers away from traditional banks by appealing to people with substandard credit records. The 22 payday loan offices in West Palm Beach, Florida made $328.9 million in loans in fiscal year 2010, an increase of 119 percent from fiscal year 2008 31 In the health care area, it is argued that tooth extractions are an example of an inferior good. As individuals' incomes rise, they are able to afford more complex and expensive dental restorative procedures, such as caps and crowns, and they are able to purchase more regular preventive dental services. Thus, the need for extractions decreases as income increases. Prices of Related Goods There are two major categories of goods or prod- ucts whose prices influence the demand for a particular good: substitute goods and complementary goods. Substitute Goods Products or services are substitute goods for each other if one can be used in place of another. Consumers derive satisfaction from either good or service. If two goods, X and Y, are substitutes for each other, an increase in the price of good Y will cause consumers to decrease their consumption of Ann Zimmer Deborah Ball, "Noth Zimmerman, "Frontier of Frugality," Wall Street Journal (Online), October 4, 2011. ah Ball, “Nothing Says, 'I Love You, Fido Like Food with Gourmet Flair," Wall Street Journal,

Answer 1

Answer:

The above pictures represent the factors affecting on the demand other than price.

According to the law of demand when price increases quantity demanded decreases or vice versa if other factors are remaining the same. These other factors include inferior goods, price of related goods that is substitute products and complementary products, future expectations and number of consumers.

Inferior goods: when income increases people will decrease the demand of such inferior gods and they demand some more of qualitative products.

Price of related goods: related products are of two types: substitute goods and complementary goods. When the price of one product increases the demand for substitute product increases because consumers derive same satisfaction level with the substitute products. in case of complementary goods when the price of one product increases the demand for the other decreases because one product cannot be used without other.

Future expectations: when consumer expect prices move to be lower in the future, they postpone the current consumption. They may have less demand.

Number of consumers: when size of the population increases the demand for the goods and services increases.