Travel since 9/11 has been on the rebound and the discount craze that has been happening in the United States, Europe and Asia has now started to take flight in Latin America. Travelers in South America have had to endure long uncomfortable bus rides to travel any variety of distances. In the past year, four budget airlines have been able to expand and offer cross border trips and even flights to tourist areas at costs that it would take to fill your car with a tank of gas.
Definition of the Principle
The article illustrates the principle of a shift in Demand. The law of demand states that the quantity of a good demanded is inversely related to the good's price. As it is evident in this definition, a good is demanded more when the price goes down, and conversely a good has less demand when the price goes up.
Visualizing this inverse relationship will help to understand the law of demand. The law of demand is illustrated with a demand curve. It is a graphic representation of the relationship between price and quantity demanded. A shift in demand is caused by a variety of determinants such as; Society's income, The price of other goods, Tastes and preferences, Expectations, and Taxes on and subsidies to consumers to list a few. The theory of self interest goes hand in hand with the law of demand. Consumers search for a higher standard of living. While paying more for a certain good will decrease the budget and thus decrease their budget and sacrificing other goods; paying less for a certain good that will increase their standard of living and also require less of the budget to acquire other goods.
Ancillary Definition (s)
Corresponding with a Shift in demand is a...