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The market for a product may drop because

  • Changing times make the product less useful - e.g. buggy whips
  • A better product that does the same thing comes along- e.g floppy disks sales drop because of flash drives
  • A cheaper substitute that is good enough comes out-- e.g. oleo for butter,nylon for silk
  • Bad news comes out about safety of the product- eg, E Coli found in sprouts
  • The price of the products goes up sharply- eg gasolene
  • Special taxes are added to the product- eg tobacco
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Q: Why the market for a product might reduce in size?
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