Demand Determinants

Bell Work

What is the demand curve? Why is it a downsloping line? What are the determinants of demand?

It is winter and there is an increase in the demand for hot chocolate. What is the demand determinant?

Seasonality

Oh no! There is a huggggggge storm coming! Everyone decides to go out and buy generators for the impending doom. The demand for generators goes up! What is the demand determinant?

Expectations

It is spring break time and there is a rise in demand for hotels in Mexico by college students. What is the demand determinant?

Demographics

Oh snap! Apple has decided to come out with the iPhone 7 and now everyone wants the new hot thing. All of your friends are getting it because the new features are pretty bomb. What is the demand determinant?

Trends

You are super broke because you got fired for insubordination at your job. Your demand for inferior goods (like Taco Bell) has gone up because you just can’t afford Chipotle. What is the demand determinant?

Change in income

You just heard that the lottery is at $527 million dollars. You also heard that your chances of winning are pretty darn good. What is the demand determinant?

Expectations

Xbox One has recently experienced a massive PRICE DROP! The demand for Xbox One games increases. What is the demand determinant?

Price of Related Goods

Jennifer Lawrence is the one of the most popular actress in Hollywood right now. She starts wearing boots and now everyone wants to wear boots! What is the demand determinant?

Trends

You just got a raise at your job. Your demand for SUPERIOR GOODS has increased. What is the demand determinant?

Change in income

The University of Arizona has been winning a lot of its games and now everyone wants to buy their hoodies. Everywhere you go, UA hoodies abound! What is the demand determinant?

Trends

Oh my gosh. It is SO HOT OUTSIDE! The demand for delicious iced coffee drinks has gone up. What is the demand determinant?

Seasonality

The price of beef has gone waaaaaay up… Unfortunately because a large number of cows had to be euthanized because of mad cow disease. As a result, the demand for CHICKEN goes up! What is the demand determinant?

Price of related goods

Awwww yeah, you noticed that everyone is wearing super cute bows. You think to yourself, “I’d look great in a bow.” The demand for bows goes up. What is the demand determinant?

Trends

You applied for a job, aced the interview, and now you actually have an income! YEAH! GO YOU! As a result, your demand for a superior good goes up! No more bologna for you… gettin’ that steak. What is the demand determinant?

Change in income

There are a lot of older people coming up on retirement age… and honestly, they are tired of all that cold weather. The demand for housing in Arizona goes up. What is the demand determinant?

Demographics