This document discusses factors that can affect demand, including: 1) Changes in consumer income - Higher incomes allow consumers to purchase more goods, while lower incomes reduce purchasing. 2) Changes in tastes and preferences - Advertising, trends, new products, and seasons can influence what consumers want. 3) Prices of related goods - If substitutes become more expensive, demand may rise for alternatives, while complementary goods see increased demand when used together.

1. FACTORS AFFECTING
DEMAND
Teaching Demonstration
SHS Category
Allan Dave Castro
Applied Economics
In-Service Training 2023
ABULUG DISTRICT

2. LEARNING OBJECTIVES:
Identify the
factors
affecting
demand.
1
Explain the
factors affecting
demand.
2
Comprehend
analytically the
shifts of curve of
demand.
3

3. INITIAL ACTIVITY

4. Factors
Affecting
Demand
Usually two types
of changes:
•A change in the
quantity demanded;
and,
•A change in demand
itself

5. Change in Quantity
Demanded
 A movement along the demand
curve that shows a change in the
quantity of the product purchased
in response to a change in price.

6. Two Reasons for Change
Income Effect Substitution Effect

7. Income Effect
The change in quantity demanded
because of a change in price that
alters consumers’ real income.

9. Substitution Effect
The change in quantity demanded
because of the change in the relative
price of the product.

11. Change in Demand cont.
If the price increases for each item demanded, the curve
moves to the right.

12. Change in Demand cont.
If the price decreases for each item
demanded, the curve moves to the left.

13. Change in Demand
Income
Taste and
Preference
Price of the
related goods
Expectations Poulation

14. Consumer Income
When your income
goes up, you can
afford to buy more
goods and services
vice-versa.

15. NORMAL GOODS vs. INFERIOR GOODS

16. Consumer Taste and
Preference
Advertising, news
report, fashion trends,
introduction of new
products, and change in
the season can affect
consumer tastes.

17. Substitute Goods
Demand for a product
tends to increase if the price
of its substitute goes up and
vice-versa.

18. Example of Substitute Goods
Coke and Pepsi ( If Coke goes up in price,
SOME people will buy Pepsi as a substitute)

19. Complementary Goods
When the use of one
good increases the
use of another.

20. Example of
Complementary Goods
Coffee and Sugar

21. Price Expectation
People stocked up on
items that weren’t scarce
at that time because
they were afraid, they
may become scarce in
the future; this created
demand.

22. Population
Increase in the number
of consumers causes
an increase in the
market demand curve.

23. ACTIVITY TIME
What to do?
1. Create a team.
2. Choose an envelope that has a question.
3. Read quietly and analyze the question.
4. Brainstorm and process the chosen question.
5. Write your answer.
6. For the role play 3 minutes to plan, and 2 minutes to
play in front.
RURBICS FOR THE ROLE PLAY
IDEAS/KNOWLEDGE/THOUGHT - 15 POINTS
ORGANIZATION/PRESENTATION - 5 POINTS
TEAMWORK - 5
TOTAL -25

24. ASSESSMENT TIME

25. ASSIGNMENT
•Demand Schedule
•Supply Schedule
•Quantity Demanded
•Quantity Supplied
Research further and study the following:

26. THANK
YOU!