1. Changes in Demand

2. Changes in Demand
A demand curve is accurate only when all other factors are constant
When things do not remain constant, the demand curve shifts
The Quantity demanded (Qd) changes at every price because of something other than a price changed

3. Change in Demand
Price
Quantity

4. Does a change in the price of goods shift the demand curve?
NO!!!

5. A change in price causes a movement along the demand curve
A change in price causes a movement along the demand curve. This is called a change in quantity demanded

6. The causes of a demand curve shift
Substitute & compliment price changes
Consumer Expectations
Population
Consumer Tastes and Advertisements
Others…

7. Substitutes Something that is similar to another product
When the price of good A increases and causes the demand for good B to increase, than the two goods are substitutes.

8. Compliment
When a decrease in the price of one good causes the demand for another good to increase
Happens with two goods that are bought and used together

9. Normal Goods vs Inferior Goods
a good that consumers demand more of when their income increases
A good that consumers demand less of when their incomes increase
Since you make money, you can afford something better.

10. Normal or Inferior Good?

13. Consumer Expectations
Expectations about the future
What if someone told you a bike would be on sale in a week, which way would the demand curve shift on that day you found out about the impending sale?

15. Consumer Tastes and Advertising
Fads affect demand

17. Advertisements
Good advertisements can increase demand

26. Partner Activity In your bell work please do the following:
Write a specific market at the top (Shoes for example)
Write a scenario that will impact that market (Adidas spends 50 million dollars on a new advertisement campaign).
Pass the paper behind you

27. Partner Activity Read your market and the scenario.
Determine if the scenario would have an effect on the demand curve.
If it does, correctly shift the curve
If it has no effect on the demand curve, than don’t shift the curve and show the correct impact…
Then explain why. The demand may increase or decrease in some cases