1.2.1 - Demand NOT IN Flashcards
What is Demand?
The amount of a good that consumers are willing and able to buy at a given price
How does Price affect Demand?
As price increase demand will decrease
What are 10 Non Price Factors?
- Price of Substitutes
- Alternative brands
- Price of compliments
- Changes in consumer income
- Trends and fads in fashion and tastes
- Marketing
- Population Structure and demographics
- Time of Year
- Weather and climate
- External Shocks
How does Price of Compliments affect demand?
A complimentary product is one that needs to be used with another product
As prices of these complimentary goods rise then demand for the main product falls
How does changes in consumer income?
As consumer income rises, demand for some products fall
As consumer income rise then they have more disposable income to spend on luxiers
How does Weather and Climate affect Demand?
Some products have a seasonability factor and may be affected by the weather and the climate
e.g. strawberries
How does Time of Year year affect Demand?
Some products reach peak demand at certain times of the year
E.g. Christmas Trees , Turkey
Easter Eggs
Pumpkin
