econ

• NPD's: Demand Increases: When income increases (normal goods).
• NPD's: Demand Increases: Favoured Preferences/Tastes - i.e product becomes more popular, so demand increases.
• NPD's: Demand Increases: Increased Price of Substitute Goods. (pepsi & coke)
• NPD's: Demand Increases: Fall in price of a complementary good.
• NPD's: Demand Increases: Increased number of consumers.
• NPD's: Demand Decreases: Increased Income (inferior goods) e.g second-hand clothes.
• Diminishing Marginal Utility : As the quantity of a good increases, the marginal utility received by consumer decreases.
• Substitution Effect: When the price of a good falls, the consumer substitutes away from that good to buy more of the cheaper good, resulting in increased demand of cheaper good.
• Income Effect: If a consumer's real income (purchasing power) increases then the consumer can buy more of a good causing the demand to increase.