Table 5.1 Factors That Shift Demand

When this happens . . .. . . demand increasesBut when this happens . . .. . . demand decreases
When the price of a substitute rises . . .
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. . . demand for the original good increases.
When the price of a substiture falls . . .
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. . . demand for the original good decreases.
When the price of a complement falls . . .
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. . . demand for the original good increases.
When the price of a complement rises . . .
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. . . demand for the original good decreases.
When income rises . . .
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. . . demand for a normal good increases.
When income falls . . .
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. . . demand for a normal good decreases.
When income falls . . .
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. . . demand for an inferior good increases.
When income rises . . .
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. . . demand for an inferior good decreases.
When tastes change in favor of a good . . .
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. . . demand for the good increases.
When tastes change against a good . . .
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. . . demand for the good decreases.
When the price is expected to rise in the future . . .
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. . . demand for the good decreases today.
When the price is expected to fall in the future . . .
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. . . demand for the good decreases today.
When the number of consumers rises . . .
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. . . market demand for the good increases.
When the number of consumers falls . . .
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. . . market demand for the good decreases.