ECONOMICS- demand curve

The demand curve shifts:

• if anything another than the price changes we’ll see a shift left or right in the demand curve

• If the price changes there will and extension or contraction in demand

• when demand increases and incomes rise and demand decreases when incomes fall this is know as a NORMAL GOOD

• For example, if people have more income there may be a fall in demand for budget good (e.g sainsbury’s basics ice cream as opposed to a branded option) — demand would shift inwards

• Demand or budget items if incomes fall

• These are known as INFERIOR GOODS

FACTORS THAT AFFECT DEMAND

1. advertising- more advertising= more demand

2. Fashion and trends- in and our of style

3. Population and age structure - bigger popualation more demand

4. Seasons - winter=more demand for acts

5. Income- dependant on normal or inferior good

6. Price of other good- complementary ore substitute goods