Movements in the demand curve?

Question 1

What factors can cause the demand curve to shift?

Answer 1

Income
Changes in population
Changes in fashion/ trends
Changes in legislation
Changes in interest rates

Question 2

How does income effect demand?

Answer 2

As income increases so does demand as people have more money so can buy more goods

Question 3

How does a change to the population effect demand?

Answer 3

As the population increases so does demand

Question 4

Give an example of how new government legislation can influence demand?

Answer 4

Example: Government makes child car seats compulsory
Massively increases demand

Question 5

How can advertising effect demand?

Answer 5

More advertising increases demand as people are more likely to want the product

Question 6

How can changes to interest rates influence demand?

Answer 6

Higher interest rates, people are more inclined to save money so demand decreases
Lower interest rates people have less incentive to save so demand increases