Demand Curve Visual –Due _______________________________
There are five factors that cause the demand curve to shift:
1. Change in buyer income (example: you get a big bonus so you demand more goods)
2. Change in the price of related goods is actually 2 things:
• Substitute-any good that can be replace the good you are wanting to buy
• The price of one good and the demand for the other good move in the same
direction (example: $ of French fries ↑, so demand for potato chips ↑)
• Complements—any two goods that you consumer together
• The price of one good and the demand for the other good move in the
opposite direction (example: $ of milk↑, so the demand for cereal ↓)
3. Change in tastes or preferences (example: if it was announced that pork makes you smarter,
people would prefer to eat pork and its demand would increase)
4. Change in future expectations (example: if you knew the price of gas was going up
tomorrow, demand for gas would increase today)
5. Number of buyers- the more buyers the higher the demand (example: a massive way of
immigration to New England increase demand for coats)
ASSIGNMENT:
Change in Tastes or Preferences
 A description of the variable (1 point
each)
 A scenario using that variable (1 point
each)
 A diagram showing how your scenario
shifted the demand curve—be sure to
label your X and Y axes (2 point each)
Change in Buyer Income
 A description of the variable (1
point each)
 A scenario using that variable
(1 point each)
 A diagram showing how your
scenario shifted the demand
curve—be sure to label your X
and Y axes (2 point each)
Change in Number of Buyers in the Market
 A description of the variable (1 point
each)
 A scenario using that variable (1 point
each)
 A diagram showing how your scenario
shifted the demand curve—be sure to
label your X and Y axes (2 point each)
Change in Expectations of Future
Price
 A description of the variable (1
point each)
 A scenario using that variable
(1 point each)
 A diagram showing how your
scenario shifted the demand
curve—be sure to label your X
and Y axes (2 point each)
Price of Related Goods--Substitute
 A description of the variable (1
point each)
 A scenario using that variable
(1 point each)
 A diagram showing how your
scenario shifted the demand
curve—be sure to label your X
and Y axes (2 point each)