1. Ceteris Paribus “All other things held constant”
Demand curves are accurate as long as there are no other changes than PRICE
Price causes movement ALONG the demand curve
Other factors cause the demand curve to SHIFT

2. A shift in a demand curve is not the same as moving along a demand curve.

3. Normal v. Inferior Goods
Most goods are normal goods- goods we demand more of when our income increases
Ex. new cars, HDTV
Inferior goods are those you would buy in smaller quantities if income increased
Ex. generic products, used cars

4. What causes a shift? Income Consumer Expectations
Inferior goods are purchased when income drops
Expectations of higher or lower prices in the future can cause demand to increase or decrease

5. What causes a shift? Population Consumer Taste/Advertising
Rise in population creates higher demand for housing, food, utilities, etc.
Advertising & publicity often play a role in creating fads & social trends

6. Complements v. Substitutes
Complements are two goods that are bought and used together
Examples?
Substitutes are goods used in place of one another

7. We can sum up these factors as:
T Tastes & preferences
R Related goods
I Income
P Population
E Expected pricing
Complete demand scenarios worksheet on your own.