What are 5 factors that can lead to a change in demand?

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1016214

2026-05-19 03:16

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  • Demographic changes: For example, old people don't generally demand Justin Bieber CDs nor young people demand fake teeth
  • Income changes: As a person rises in income level, they demand different goods (for example, An average Nigerian family would not demand cars as opposed to an average Australian family)
  • Fashion and taste: Differing fashion means demand for different goods
  • Price of substitutes: Substitutes that are goods that can be used instead of a good (coffee can be used instead of tea.) Changes in price of substitute goods can have implication for the demand for a good.
  • Price of complements: Complement goods are two or more goods that go together (Computer and mouses) when price for one falls (Computer), it is likely that the complements are demanded more (mouses) and other way around.

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