Shifting the demand curve

Question 1

Population

Answer 1

The larger the population, the higher the demand.

Question 2

Income

Answer 2

If consumers have more disposable income they are more able to afford more goods, so demand increases.

Question 3

Substitutes

Answer 3

Substitute - a good that can replace other goods
E.g. two brands of tv.
If the price of brand B falls , the quantity demanded of Good A will fall, as consumers will switch to the cheaper option.

Question 4

Complements

Answer 4

A complement goes with another good.
E.g. strawberries and cream.
If the price for strawberries increase, the demand for cream will fall because fewer people will be buying strawberries, hence fewer people buying cream.

Question 5

Advertising

Answer 5

Will increase consumer loyalty to the good and increase demand.

Question 6

Tastes and fashion

Answer 6

If consumer tastes change, the demand curve will shift.
E.g. the demand for physical books might fall, if consumers start preferring to read e-books.

Question 7

Seasons

Answer 7

Demand changes according to the season.
E.g. in the summer demand for ice creams and sun screen increases.