1. Aud39

    Aud39 Senior Member

    Français
    Hello,

    I am reading an economic document with graphs and I always find the expression "shift inward"... I do not understand what it means and how a curve can "shift inward"???

    An exemple : "The higher the degree of substituability among products, the more will the individual firm's inverse demand function shift inward as firms expand their outputs with a shift from uniform price to non-uniform price princing."

    => Plus le degré de substituabilité entre les produits est important, plus la fonction de demande inverse des entreprises "va vers l'intérieur" (mais ça ne veut rien dire !!) comme les entreprises augmentent leur production en passant d'un prix uniforme à un prix non-uniforme.

    Could you help me please?

    Thank you very much.
     
  2. Gutenberg

    Gutenberg Senior Member

    Province de Québec, Canada
    français international
    « Demand function
    The mathematical function explaining the quantity demanded in terms of its various determinants, including income and price; thus the algebraic representation of the demand curve.

    Demand
    1. The act of offering to buy a product.
    2. The quantity offered to buy.
    3. The quantities offered to buy at various prices; the demand curve.

    Demand curve
    The graph of quantity demanded as a function of price, normally downward sloping, straight or curved, and drawn with quantity on the horizontal axis and price on the vertical axis. Demand curves for imports and for foreign exchange usually have the same qualitative properties as demand curves for goods, but for somewhat different reasons. »

    I suppose your "shift inward" is a "downward slope".
     
  3. Aud39

    Aud39 Senior Member

    Français
    Yes it is has a downward slope but in the text it is an action : "the curve shifts inward". So I do not understand if it goes up or down and how not to simply use a simpler expression??

    Thank you Gutenberg.
     
  4. Gutenberg

    Gutenberg Senior Member

    Province de Québec, Canada
    français international
  5. Aud39

    Aud39 Senior Member

    Français
    ok merci beaucoup Gutenberg !
     

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