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Tuesday, May 27, 2014

What are are the Determinants of Demand/ What Causes a Shift in Demand?

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Consumer Income
Income goes up; consumers will buy more shifting demand to the right. Goes down, consumers will buy less shifting demand to the left.

Consumer Expectations
 If consumers think prices, for economy, technology, etc., will change in the future this will have an effect on their consumption of today.

Population
Population increases the number of consumers and can shift demand to the right. Decreases shift to the left.

Consumer Tastes and Advertising
Consumer’s change over time the things that they want. As they change their tastes, their demand shifts to the right or the left.

Price of Related Goods
Complementary and Substitute items can have an effect on what consumers will purchase and increase the demand for products.
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