DEMAND CURVES

NORMAL GOODS

• Scenario:Winning the lottery.
• Answer:Demand for normal goods goes up
• Factor: Normal goods

INFERIOR GOODS

• Scenario: I get a raise for my job.
• Answer: The demand for inferior goods goes down.
• Factor: Inferior goods.

POPULATION

• Scenario: the population in Detroit increased because of the new jobs available.
• Answer: Inferior goods were in higher demand.
• Factor: population

CONSUMER EXPECTATIONS

• Scenario: A new iPhone comes out next week but my phone upgrade comes next month.
• Answer: My prediction would be price will go down for the new phone.
• Factor:customer expectations.

CONSUMER ADVERTISING

• Scenario: Eating Cheerios makes your heart healthier.
• Consumers want to buy it to have a healthy heart.
• Factor: Advertising