Question

For the Simon Property group:

Discuss how the firm’s demand is changing. Why? What factors affecting consumer choice and demand shifters are responsible for the change? How do changes in demand affect company’s revenue (support with the revenue figures). Sketch changes in firm’s demand and revenue using demand graphs.

what more detail do you need can you explain so more please

Answer 1

There are two things to keep in mind that there is difference between change in quantity demanded and change in demand. Change in quantity demanded occur due to change in its own price of the good while change in price of the good occurs due to following reasons:

• Change in relative price of good
• Change in Income
• Change in Expectation of a consumer
• Change in taste and preference of consumer

Change in demand of a good due to above factors shift demand curve to upward or downward while change in quantity demanded cause movement along the demand curve.

Revenue with demand curve is initial revenue while revenue with demand curve new demand is initial revenue + new revenue in diafram below.