Factors that may shift the Demand Curve

Question 1

what are the main factors that may shift the demand curve (6)

Answer 1

• advertising
• income
• fashion and tastes
• price of substitutes
• price of complements
• demographic changes

Question 2

what is the pneumonic to remember the factors that shif tthe demand curve

Answer 2

DIFAPP

Question 3

how can advertising shift the demand curve

Answer 3

advertising can shift the demand curve by creating appealing videos and adverts about a certain product, for example coca cola, however it is hard to measure the amount of demand gained from advertising but overall advertising does help demand by putting your product out to a larger audience

Question 4

how can income shift the demand curve

Answer 4

generally when disposible income rises, demand rises, when peoples wages rise they may want to buy more cars or an extra holiday, these are all normal goods
however inferior goods maybe have less demand due to income rising for example public transport is an inferior good

Question 5

what is disposible income

Answer 5

income that is available to a person over a period of time including state benefits but excluding direct taxes

Question 6

what are normal goods

Answer 6

goods for which demand will rise if income rises or fall if income falls

Question 7

what are inferior goods

Answer 7

goods where demand will fall if income rises of vice versa, examples public transport, or own label supermarket brands

Question 8

how can fashion and tastes shift the demand curve