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hat consumer finds that his/her income has been increased, the consumer would then have extra money to spend on other thing he/she would enjoy spending on. Furthermore, he/she could even spend more on the existing expenses. Thus, the consumer is actually spending more than before with an increase in his/her income, thereby leading to an increase in demand. Distribution of income: if national income were redistributed from the poor to the rich, the demand for luxury good would rise. At the same time, as the poor got poorer they might have to turn to buying inferior goods, whose demand would thus rise too.

An increase in income has effect of shifts demand for normal goods to the right.

However, a rise in income shifts demand for inferior goods t the left.

A rise in income will increase the demand for normal good, and decrease the demand for an inferior good.

Price of Other Goods: There are having two related goods, such as Substitute goods and Complementary goods.

Substitute goods: Good that can be used in place of some other good and that fulfills more or less the same purpose. A rise in the price of a substitute increases the demand for a good, shifting the demand curve to the right. For example, if price of coffee rise, more of the Substitute (tea) is bought.

Complementary goods: used together with the good we are interested in. A rise in the price of complementary decrease the demand for a good, shifting the demand curve to the left. For example, if price of car rise, consumers will buy less petrol, because car and petrol those goods are used together.

Expectation of Future Price: An expectation that price will rise (fall) in the future shifts the current demand curve rightward (leftward). If consumers expect price of that good will rise, consumers will buy more now.

Number of Buyers/Population: The Population will affect the demand. As the population increase numbers of buyers will ordinary increase, demand for good will increase. If the population increases, the demand curve will shift to the right because of number of buyers are increasing.

Tastes: There are many factors of tastes that effect demand, such as fashion/trend, advertisement, research about good. For example, advertisement will cause increase taste of buyers, and research about good that studies shows that eating chicken can cause cancel.

Combination of all the personal factors that go into determining how a buyer feels about a good.

When tastes change toward a good, demand increases, and the demand curve shifts to the right.

When tastes change away from a good, demand decreases, and the demand curve shifts to the left.

Other factor: There is also having other factor that effect demand, such as Government policy. For example, Institutional rules, Olympia rules that every Monday all of the students must wear formal, so the demand for formal clothes will increase.

Example for Changes in Demand

Original Technology New Technology

Price of a can of Cola (RM)

There is a change in demand means that the demand curve shifts to the right. Thus, there is now a comparison between the new demand curve and the old demand curve. This can be show in Diagram above.

The demand curve will shift to the right ( D1 shift to D2本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。