Factors Affecting Demand

Read this to learn about how factors that affect demand, such as income and change in tastes, are graphed as shifts of the demand curve. Make sure to answer the "Try It" questions.

Glossary

complements:

goods or services that are used together because the use of one enhances the use of the other

substitutes:

goods or services that can be used in place of one another

inferior good:

good or service whose demand decreases when a consumer's income increases and demand increases when income decreases

normal good:

good or service whose demand increases when a consumer's income increases and demand decreases when income decreases