Economics

Economics

1. Number of Consumers

   • If consumers increase, so will demand, because there will be more consumers.

2. Price Expectations

   • If prices are expected to rise then demand will increase, as consumers will think they'll have to pay more if they wait.

3. Change of Income

   • less income means less demand. (not as much money to spend). More income means more demand, on normal goods, not on inferior goods.

4. Price of Substitutes

   • If there are changes in price of competing products then there will be a change in demand for the original product.

5. Complementary Products

   • If price for a complementary product increases then the demand for the original product will decrease.

6. Law

   • Legal changes can change demand - cigarettes - banning of public smoking.

7. Adverts

   • A successful advertising campaign can increase demand, due to consumers being more aware of the product and it's benefits.

8. Weather Conditions

   • Some products are seasonal, therefore the weather affects demand

9. Fashion

   • Products in fashion will increase in demand

10. Changes in Quality/Tastes

    • Improvements to a product will increase a demand