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Unformatted text preview: demand for tea Ch3: Demand and Supply 5 Changes in Demand, continued Complements = Goods that are used together ex.) Coffee and cream Increase in the price of coffee decreases the demand for cream Ch3: Demand and Supply 6 Changes in Demand, continued 3. Changes in expectations Price expect price to rise current demand expect price to fall current demand Income expect income to rise D for normal goods and D for inferior goods 8/28/2011 2 Ch3: Demand and Supply 7 Changes in Demand, continued 4. Tastes and Preferences 5. Number of Buyers more buyers D fewer buyers D...
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- Spring '08