The Demand Environment Changes in Demand at Each and Every Price… Spring 2014

Use the Factors of the Demand Environment Factors of the demand environment that cause change in demand a. Income b. Price of Substitutes c. The #of buyers d. Price of compliments e. Tastes f. Future expectations 2. For each of the factors do the following: a. Identify the factor b. Choose either a increase or decrease in demand at each and every price (“+” or “-”). c. Explain the scenario that will result in demand increasing/decreasing at each and every price. d. Draw the correct demand curves.

For example... Consumer Income. Decrease “-) People have less money due to a massive recession in the economy, less jobs. 4.

For example

Curving changes in the demand At Each And Every Price $ D D1 D2 1 10 8 12 3 8 6 10 5 6 4 8 7 4 2 6 9 2 1 4 Create a demand curve marking D, D1 and D2 to show a change in demand