Unformatted text preview: Income: In addition to the prices of other goods, the income that consumers have available to
spend also effects their willingness and ability to buy a good. a Normal 00 : A good for which thePasﬁncome risesiandidecreases as:
o Inferiod: A good for which the-Id ecreases as .
‘W 481°?" 1V \OVdS LE \2 Tastes: A consumer’s taste for a product can change for manylreasons. omletnnes trengs play a
substantial role. Consumers can also be inﬂuenced by an advertising campaign for a product. Population: Population and demographic factors can affect the demand for‘a product. As the
population of the United States increases, so will the number of consumers, and the demand for
most products will increase. The demographics of a population refer to its characteristics, with
respect to age, race, and gender. As the demographics of a country or region change, the demand
for particular goods will increase or decrease because different categories of people tend to have diﬁerent preferences for those goods. Expected future prices: Consumers choose not only which products to buy but also when to
buy them. On the one hand, if enough consumers become convinced that printers will be selling
for lower prices three months from now, the demand for printers will decrease now, as
consumers postpone their purchases to wait for the expected price decrease. On the other hand, if
enough consumers become convinced that the price of printers will be higher three months from
now, the demand for printers will increase now, as consumers try to beat the expected price increase. Figgre 3.4: Variables that shift market demand curves A. An increase in the price of a substitute good: /\ ...
View Full Document
- Spring '11