Factors Affecting the Demand Curve

Factors Affecting the

Demand Curve

Average Income When average income increases, demand increases
Population Increase in the population increases the market size and hence demand
Price of Related


Substitutes: When relative price of potassium fertilizers increases, demand for Nitrogenous fertilizers increases

Complements: When the price of petrol increases, demand for Light Commercial vehicles decreases.

Tastes & Preferences Demand of Stylized motor cycles and scooters


Buy stocks when you expect the market to move up
Information Mad-cow disease in Europe decreased the demand for beef.

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