Asked by: Tina Vercruysse
asked in category: General Last Updated: 14th June, 2020

How does consumer taste affect demand?

1. Tastes and Preferences of the Consumers: A good for which consumers' tastes and preferences are greater, its demand would be large and its demand curve will therefore lie at a higher level. People's tastes and preferences for various goods often change and as a result there is change in demand for them.

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Keeping this in view, how does consumer expectations affect demand?

Consumer Expectations. If consumers expect a product's price to fall, they will wait to buy the product when it is cheaper. In other words, demand falls. But if they expect the price to increase, they demand more of the product now, while it's still cheap.

Secondly, how does population affect demand? Current market demand reflects the effect of supply and demand in previous periods. Current population size will affect future market demand through prices and supply elasticity. Population changes are slow, and consumption changes are slow.

Considering this, how does change in taste affect demand?

1) A positive change in tastes or preferences increases demand (shifts it right/up). A negative change in tastes and preferences will decrease demand (shift it left/down). If tastes and preferences sour (make demand decrease) then we would expect market price and market quantity to decrease.

What are four of the eight factors that affect supply?

Some of the factors that influence the supply of a product are described as follows:

  • i. Price:
  • ii. Cost of Production:
  • iii. Natural Conditions:
  • iv. Technology:
  • v. Transport Conditions:
  • vi. Factor Prices and their Availability:
  • vii. Government's Policies:
  • viii. Prices of Related Goods:

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