What are factors that would affect demand?

Answer 1

• Change in Consumer Price Expectations: If people expect the price to go up later, they'll buy more now and less later. If they expect the price to go down, they'll buy less now and more later.

• Change in Consumer Income: If people make more money, they can buy more goods.

• Change in Consumer Tastes: If people like a good more based on advertising or experience, they'll buy more. If they like it less, they'll buy less.

• Change in Number of Consumers in the Market: If there are more people buying things, there will be more demand. If there are less people to buy things, there will be less demand.

• Change in Price of a Substitute Good: If the price of a substitute good, or something you buy instead of something else, goes down, you'll buy less of the original good and more of the substitute.

• Change in Price of a Complementary Good: If the price of a complementary good, or something you need/use with another, goes up, you'll buy less of the original good. Example: If DVD's rise in price, people will buy less DVD players.