Determinants+of+Demand+ECON


 * Determinants of Demand:**
 * P**-preferences/tastes (New fashion trends)
 * R-**related goods: substitutes & compliments (When buying french fries you also buy ketchup)
 * I**-income: normal, inferior, superior (If an athlete receives a raise, he will buy more cars)
 * C**-consumers in market (More immigration will cause an increase in demand for houses)
 * E**-expectations about the future (Hurricane in Florida will cause prices of oranges to go up in a month, so people buy more oranges now)

[|Gas Prices Change Demand for Cars] The article by Chris Woodyar is a perfect example of how the determinants of demand work. New car models are coming out with great milage, which is what the people look forward to. The only problem is that the gas prices have risen greatly, and people are thinking twice before buying these new cars. This situation is an example of complimentary related goods because in order to sell cars, the gas prices need to stay low. One good affects the other, which changes the demand curve.

