Question

State four factors that may lead to a shift in demand as shown in the diagram below. 

Answer 1

• Decrease in consumer's income
• Unfavourable government policies (increased taxes, strict licensing)
• Decrease in population
• Future expectation that prices will decline
• Unfavourable/off peak season for particular commodities
• Negative taste & preference for a particular product(or fashion)
• Availability of better substitutes
• Reduced prices of substitute goods.
• Increase in price of complimentary goods
• Unfavourable terms of sales