Non-price Determinants of Demand
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
AO2 Application and Analysis
Summary
This topic explains the non-price determinants of demand: factors other than a good’s own price that shift the demand curve. It covers income (normal and inferior goods), tastes and preferences (including branding and addiction), expectations of future prices, prices of related goods (substitutes and complements), and the number of consumers, with examples showing how each factor raises or lowers demand.
