Business – 3.1 The nature of marketing – Demand and supply | e-Consult
3.1 The nature of marketing – Demand and supply (1 questions)
Login to see all questions.
Click on a question to view the answer
Key demand‑shifting factors include:
- Consumer income: An increase in disposable income generally raises demand for normal goods (e.g., higher wages boost demand for smartphones).
- Prices of related goods: A fall in the price of a substitute (e.g., cheaper tablets) can reduce demand for the original product.
- Consumer tastes and preferences: A fashion trend favouring eco‑friendly products can increase demand for biodegradable packaging.
- Expectations of future prices: If consumers expect a price rise next month, they may purchase more now, shifting demand rightward.