Unit 2.1 · Demand
Non-price Determinants of Demand
AO2
Syllabus Requirement
Factors that cause the demand curve to shift: income, tastes and preferences, future price expectations, prices of related goods, and number of consumers.
Assessment Objectives
AO2Application and Analysis
Summary
Demand represents the amount of a good or service that consumers are willing and able to purchase at various prices over a specific time frame. While the law of demand indicates that price changes affect quantity demanded, other factors, known as non-price determinants, can also lead to shifts in the demand curve. Understanding these determinants is essential for analyzing consumer behavior in economics.