Demand Factors

Consumer Factors

• Consumer Income: Increase in income allows consumers to buy more products at each price, causing a rightward shift in the demand curve.

• Consumer Taste: Influenced by advertising, news reports, fashion trends, and changes in season. Tastes and preferences can change over time, impacting demand.

Market Factors

• Substitutes: Demand for a product increases if the price of the substitute goes up, and vice versa.

• Complements: The use of one good increases the use for another.

• Change in Expectations: Reflects how people think about the future.

• Number of Consumers: Changes in income, tastes, and prices of related products can affect demand.