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Unformatted text preview: Another factor influencing demand is one which marketers and advertisers are always trying to understand and target: buyers' preferences. What do people like? When and how do they like it? Still looking at soda, it makes sense that people drink more soda when it's hot, or when they're eating a meal, or when they've been exercising. In these cases, buyers' preferences have changed: they want the soda more, and are therefore willing to pay more for the same good. Likewise, if it's snowing, fewer people will crave a cold soda, and the price they are willing to pay for a cold soda is lower, although they may be willing to pay a little extra money for a hot coffee. Normal, Inferior, and Giffen Goods Are all goods the same? Is more always better? Up to this point, we have been assuming that when we have more money, or feel like we have more money, we will...
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- Fall '11
- Giffen Goods, normal goods.