What are are the Determinants of Demand/ What Causes a Shift in Demand?

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Posted by Ripon Abu Hasnat on Tuesday, May 27, 2014 | 0 comments

Consumer Income

Income goes up; consumers will buy more shifting demand to the right. Goes down, consumers will buy less shifting demand to the left.

Consumer Expectations

If consumers think prices, for economy, technology, etc., will change in the future this will have an effect on their consumption of today.

Population

Population increases the number of consumers and can shift demand to the right. Decreases shift to the left.

Consumer Tastes and Advertising

Consumer’s change over time the things that they want. As they change their tastes, their demand shifts to the right or the left.

Price of Related Goods

Complementary and Substitute items can have an effect on what consumers will purchase and increase the demand for products.

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