Demand Shifters

Changes in Population

• Population increases and decreases therefore demand increases and decreases

Population Cont'd

• Population increase= demand increase
• Population decrease= demand decrease
• People moving to a new area or people leaving an area

Changes in Income

• Demands based on available income
• Income decrease= demand decrease
• Income increase= demand increase

Income Cont'd

• If a person lost their job/ recieved a pay cut, they would not be able to afford as many items resulting in a demand decrease.
• If a person begins a job or recieves a pay raise, they are able to afford more items causing a demand increase.

Changes in Taste/Preference

• "Trends", "fads"
• Items go out of style and new items replace them

Change in Taste Cont'd

• New fads= demand increase
• Outdated fads= demand decrease
• Silly bands, disco, rubik's cube

Substitutes

• Interchangeable items
• Usually one is cheaper than another, causing people to purchase the cheaper option

Substitutes Cont'd

• Margarine for butter
• Car parts
• Generic items for name brand
• Diet soda for regular

Complementary Goods

• Items that are bought and sold together
• Goods that complement each other, go hand in hand

Complementary Goods Cont'd

• Speakers and wires
• Digital camera and SD card
• Iphone and charger
• Big mac and a coke