Shifts Of The Demand Curve
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MORE DECKS TO EXPLORE
PRESENTATION OUTLINE
INCOME: NORMAL GOOODS
- Scenario:the new iPhone came out and you know you have the money to buy it finally so will you go buy it.
- Answer: yes, the demand will be higher because you know that you are able to buy it right away.
Photo by Janitors
INCOME: INFERIOR GOODS
- Scenario: you just broke your phone and you need to pick between the cheaper iPhone 5 and the expensive iPhone 6 and your income has increased this week, which one will you choose?
- Answer: your demand for the cheaper iPhone will change because if you can afford the newer version you will buy that one instead.
Photo by Yutaka Tsutano
CONSUMER EXPECTATIONS
- Scenario: Super Bowl Sunday, the price on chips was 2.29 last week, this week they're 3.39 will people buy the chips?
- Answers: yes because of the big game people all over are hosting parties so, stores will bump up the prices because the demand is higher.
Photo by *Grant*
POPULATION
- Scenario: new people move into the neighborhood, you have your yearly summer neighborhood BBQ how does the new people affect your BBQ.
- Answer: as the population goes up so does demand, so, you will need to buy and make more food for the party.
Photo by Rachel Elaine.
CONSUMER TASTES/ADVERTISING
- Scenario: This winter UGG boots are at an all time high people are spending big time money to get these simple boots. But next winter you see that no one is wearing them, why?
- Answer: because demand changes as trends fade out so at one point they're demand was super high and now the demand is low because no one is buying them.
Photo by 4nitsirk
PRCIES OF RELATED GOODS
- Scenario: (substitute) a store reduces the price for coffee and raises the price for tea what will people buy?
- Answer: coffee because the demand will be high for the lower priced product.
Photo by destiny1wing
