Demand

1. Consumer Preferences and Tastes

1.1. Changes in consumer preferences can increase or decrease demand for certain goods. Example: Fashion trends or new technology leading to higher demand for certain products.

2. Population Size and Demographics

2.1. An increase in population generally increases demand for goods and services.

2.2. Changes in the demographic structure (e.g., aging population) can shift demand for specific products.

3. Prices of Related Goods

3.1. Substitutes: A rise in the price of a substitute increases the demand for the good.

3.2. Complements: A fall in the price of a complementary good increases the demand for the good.

4. The Law of Demand

4.1. Inverse relationship between price and quantity demanded

4.2. As price falls, the quantity demanded increases.

4.3. As price rises, the quantity demanded decreases.

5. Expectations of Future Prices

5.1. If consumers expect prices to rise in the future, they may increase demand now.

5.2. Conversely, if prices are expected to fall, consumers may delay purchases, reducing current demand.

6. The willingness and ability of consumers to purchase goods and services at various price levels over a certain period of time.

7. Seasonality

7.1. Certain goods experience changes in demand depending on the season.

8. Shifts in the Demand Curve Rightward Shift (Increase in Demand):

8.1. Rise in income (for normal goods)

8.2. Increased price of substitutes

8.3. Increased preference for the good

9. Leftward Shift (Decrease in Demand):

9.1. Fall in income (for normal goods)

9.2. Decrease in the price of substitutes

9.3. Decreased consumer preference for the good