Section 2: Changes in Demand Chapter 3: Demand Section 2: Changes in Demand (56-62)

Determinants of Demand Consumer tastes & preferences Market size Income Prices of related goods Consumer expectations

CONSUMER TASTES & PREFERENCES OUR TASTES CHANGE WHICH AFFECTS DEMAND

MARKET SIZE BIGGER THE MARKET THE HIGHER THE DEMAND GOVERNMENT, PRIVATE BUSINESSES, AND TECHNOLOGY AFFECT MARKET SIZE

INCOME INCOME INCREASES PEOPLE HAVE MORE TO SPEND BUY BETTER QUALITY BEEF

Price of Related Goods Substitute goods – increase in products price leads to increased demand for substitute

Complimentary Goods – goods used with other goods Price of Related Goods Complimentary Goods – goods used with other goods

Consumer Expectations Getting raise may buy something though you have not received your raise yet