Demand

Even though we had two days off from school this week we were still able to learn about Demand. One concept that stuck out to me was Change in Demand and the 6 factors that affect it. A Change in Demand is when something causes buyers to purchase a different amounts at every price. This cause the entire demand curve to shift. There are six factors that can cause this. The first is income. People may have more or less money to spend and this might occur because a promotion or a loss of a job. The second factor is consumer taste, which is when the popularity of something increases the demand. Market size is also a factor, because it the number of potential buyers changes. Consumer expectations are also important, because it's the prediction of future prices affect the present buying. An example of this is when people know a hurricane is going to happen so they purchase and stock up on water and food. The fifth factor is complementary goods. This is when some products are used together. For example, butter and bread. If the price for bread goes down, the demand for butter might increase. The last factor is substitute goods when products are interchangeable. An example of this could be white bread costing$2 while wheat bread costs $3. Most people are going to buy the cheap white bread.
The factor that most interested me was Market Size. I thought it was interesting when Mrs. Weser explained why ketchup isn't the leading condiment anymore. Salsa is. She explained it's for two reasons. The first is that America's baby boom generation has gotten older and their taste buds are duller, so salsa excites their taste buds. The second is that our country has had an increase in our Hispanic population and Salsa is seen as a Hispanic food. So the market size for Salsa is significantly larger than the market size for ketchup since salsa is now the most popular condiment.