Non-price conditions of demand

Question 1

disposable income

Answer 1

changes quantity of a good or service demanded at a given price.

Question 1

Population

Answer 1

A change in population size, might increase or decrease the quantity of goods or services demanded at a given price

Question 2

Fashionable and trendy

Answer 2

Over time, some goods and services become less or more fashionable. The quantity demanded by consumers at a given price changes.

Question 3

Interest rates

Answer 3

Interest rates will change the quantity of most luxury goods or services demanded at a given price

Question 4

Substitute becomes dearer

Answer 4

When the price of a substitute product like cotton changes, the demand at any given price for the other product like wool changes, as people switch between products.

Question 5

complementary good or service becomes cheaper

Answer 5

When the price of one complementary good or service changes, there is a change in the demand for the other complementary product (e.g. the price of coffee rises and the demand for sugar decreases) at a given price.

Question 6

Consumer confidence

Answer 6

Consumer or business pessimism about the future is often reflected in a change in the demand for some types of goods or services at any given price.

Question 7

Government policies

Answer 7

Government policies can lead to a change in the demand for a socially harmful good or service at a given price (e.g. laws making it illegal for young people to purchase alcohol, or the addition of a tax as a disincentive to purchase a product).