Demand Factors Flashcards
1
Q
What are the 8 demand factors?
A
Price Income Wealth Advertising Taste and fashion Demographic changes Government actions The price of other products
2
Q
Describe what effect price has on the demand curve
A
When there’s a price change it can be shown on the demand curve as moving up and down the the curve, the curve doesn’t shift.
3
Q
What is excess demand (shortage)?
A
Price is too low so demand has increased but supply has decreased.
