Changes In Quantity Demanded Flashcards
Name the 9 factors that affect demand
New technology Changes in consumer preferences Changes In a country's population Price Income levels Competition Nature of the product or service Consumers' expectations about products and services
Explain new technology
New products will increase the demand. Eg: selfones and computers
Explain changes in consumers preferences
This can affect demand. Fashionable items. For example skinny jeans are not in fashion but flared jeans are
Explain changes in a country’s population
A country that has a younger population will have a high demand for products such as cell phones, tablets and trendy clothes. But a country they has an older population, such as Japan, will have more of a demand for medical services and products that older people prefer, such as more conservative, durable clothing.
Explain price
When the price is low, the quantity demanded is high
When the price is high the quantity demanded is low
Explain income
When incomes are higher there is more demand for goods and services, and visa versa
Explain competition
If one company offers the newest good or service at a lower price than any other company, the demand will increase.
Special offers and sales can attract customers
Define nature of the product or service
Basic necessities, such as bread, maize meal and Healthcare are always in demand because everyone needs them and will try buy them no matter how much they cost.
Explain consumers’ expectations about products and services
If people know that the price of a certain product is going to increase next week, they will all want to buy the product this week to save money. The demand for the product will increase until the price increases.
How can an increase in demand be seen on a graph
The demand curve shifts up and to the right
How can we show a decrease in demand on a graph
The demand curve shifts down and to the left
