Influence of Maple Table Prices on Oak Table Demand

How does the price of maple tables affect the demand for oak tables?

When the price of maple tables rises, what happens to the demand for oak tables? Will the demand curve for oak tables shift to the right?

Answer:

Yes, you are correct. When the price of maple tables rises, people tend to switch their preference to oak tables, assuming oak tables are a substitute for maple tables. This leads to an increase in the demand for oak tables.

When the price of maple tables rises, consumers tend to shift their purchasing behavior towards oak tables. This is due to the fact that oak tables are seen as a substitute for the more expensive maple tables. As a result, the demand for oak tables increases.

Furthermore, as more buyers enter the market for oak tables, the number of potential consumers increases. With a larger pool of buyers, there is a higher likelihood of more oak tables being purchased at any given price. This increase in the number of buyers further shifts the demand curve for oak tables to the right.

Therefore, the combination of consumers switching preferences from maple to oak tables and the increasing number of buyers in the market results in an overall rightward shift in the demand curve for oak tables. This indicates that consumers are willing to buy more oak tables at various price levels.