Answer:
Four other factors that can influence demand, with an example of each are:
- Consumer expectations. If consumers expect the price of a good to go up in the future, they may be more likely to buy it now, even if the price is currently high. For example, if consumers expect the price of gasoline to go up in the summer, they may be more likely to buy gas now, even if the price is currently high.
- The number of consumers in the market. If the number of consumers in the market increases, the demand for goods and services will also increase. For example, if the population of a country grows, the demand for goods and services will also grow.
- The distribution of income. If income is distributed more evenly, there will be more consumers with the ability to purchase goods and services. For example, if the government implements a tax policy that redistributes income from the wealthy to the poor, the demand for goods and services will increase.
- Government policy. Government policy can affect demand in a number of ways. For example, if the government subsidizes the production of a good, the price of that goods will go down, which will increase demand. Conversely, if the government taxes the production of a good, the price of that goods will go up, which will decrease demand.