Factors affecting Demand?. 1. State some of the main factors that effect demand 2. Suggest how those...

Factors affecting Demand?

1. State some of the main factors that effect demand

2. Suggest how those factors can cause demand to rise or fall

3. Apply the factors to a range of different products

Objectives

Recap on price mechanism and the free market

• Student sells kidney for Ipad

Think of a product or service that you have started buying more of or less of recently

(Legal bits only!)

Now select one

• Write all the reasons why

• You should consider…

• Prices

• Incomes

• Tastes & fashions

• The level of advertising

• The price of substitute products

• The price of complementary products (e.g. coffee and cake)

• Social & demographic trends

• Expectations

• Seasonal

• Government action e.g. taxes

Factors that affect demand? Write some down under a heading of “Examples of factors in action”

Spanish villaWhat would make

consumers buy

MORE of these

goods?

What might have caused the following changes in demand?

• ASDA sold significantly fewer pegs in June – August 2012 than during the same period in 2011.

• WHY?

What might have caused the following changes in demand?

• From January 2006 10m pints of Tyskie (Polish Beer) were sold in 6 months! It was not available in 2005.

• WHY?

What might have caused the following changes in demand?

• An increase in the need for childcare, nannies and Au pairs.

• Why?

• http://news.bbc.co.uk/1/hi/business/7605805.stm

How has the Olympics affected Demand?

Olympic success gets Brits on their bikes

(British Cycling 1/10/2012)

http://www.britishcycling.org.uk/media_centre/article/gbr20121001--Olympic-success-gets-Brits-on-their-bikes-0

What’s the link between an economic downturn and…

• Comfort eating

In pairs or groups

• Complete grid for the impact on the demand for petrol.

• Try the extension question once you’ve finished

1. State some of the main factors that effect demand

2. Suggest how those factors can cause demand to rise or fall

3. Apply the factors to a range of different products

Objectives

Learning Check

• Pack bags apart from pen and sheet of paper. Put name on top of sheet.

Q1 – State as many factors affecting demand that you can remember

Q2 – Briefly explain how two of the factors (except price!) can cause demand to rise and fall for products of your choice

Q3 – Can you suggest any factors (other than demand rising) that might cause a firm to supply more of a product?