DEMAND

Disposable Income

The amount of money that an individual or household has to spend or save after tax.

Price of Substitutes

Homogenous products that are offered by competitors at a cheaper price.

Price of Complements

Two products that are typically consumed together and have a correlation in price and demand.

Preferences and Tastes

Consumer preferences heavily influenced by marketing and promotion.

Interest Rates

When the cost of borrowing increases, it leads to a fall in disposable income.

Changes in Population

Population growth leads to high demand for residential properties and affects demand for particular goods and services.

Consumer Sentiment

Consumer perception about their future income levels or job prospects.

Government Intervention

The use of taxes and subsidies, laws, (e.g., regulations on smoking) to influence demand.

Law of Demand

As the price of a product increases, the total quantity demanded decreases, and as the price decreases, total quantity demanded increases.

Shifting of the Demand Curve

Change in demand occurs when the price remains unchanged due to non-price factors.

Expansion in Demand

Movement downwards along the demand curve caused by a fall in price.

Contraction in Demand

Movement upwards along the demand curve caused by a rise in price.