Demand Factors

What are the 6 factors that affect demand?

Consumer Income

An increase in income allows consumers to buy more products at each price, shifting the demand curve to the right.

Consumer Taste

Preferences influenced by advertising, news, fashion trends, and seasonal changes that can impact demand over time.

Substitutes

Demand for a product increases when the price of a substitute rises, and decreases when the price falls.

Complements

The use of one good increases the demand for another good that is used in conjunction with it.

Change in Expectations

Refers to how consumers' perceptions about the future can influence their current demand.

Number of Consumers

Variations in income, tastes, and prices of related products can lead to changes in overall demand.