AP MACROECONOMICS UNIT 1: 1.04 and 1.05 DEMAND and SUPPLY

Celebrity endorsement

When a famous person promotes a product, which can increase demand for the product.

Fraud accusations

Accusations of dishonesty or deception, which can decrease demand for a person's movies or products.

Government warning

A stern message from the government about a health concern, which can decrease demand for related products.

Related goods and services

Goods and services that are either substitutes or complements to each other.

Substitutes

Goods that can be purchased and used in place of another similar product.

Complements

Goods that are often bought and used together with another product.

Increase in consumer income

When consumers have more money to spend, which can increase demand for certain goods.

Normal goods

Goods for which demand increases as consumer income increases.

Inferior goods

Goods for which demand decreases as consumer income increases.

Buyers (number of)

The number of people who demand a good or service, which can affect the overall demand.

Expectations of price

Consumer beliefs about future price changes, which can influence current demand.