Factors the Affect Demand Unit 4.2

More About the Demand Curve Law of Diminishing Marginal Utility – The second item will not give as much satisfaction as the first, and the third will give less than the second, and so on. Income Effect Substitution Effect

Change in Quantity Demanded Changes along a demand curve when price changes

Change in Demand Moving the Curve – Factors other than price will move the curve Six factors – Income Normal goods Inferior goods – Market size – Consumer taste – Consumer expectations – Substitute goods – Complimentary goods