Chapter4: Demand, Supply, And Markets
Section: Chapter Questions
Problem 1.2P
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Identify the NonPrice determinants of demand in the dentistry field.(per factor)
Transcribed Image Text:NonPrice Determinants of Demand
1. The average income of consumers
Persons purchase the necessities with their income. As their incomes
increase, however, they tend to buy more of the things they like to buy.
2. Size of the market
• The demand curve is affected by the number of people living in a
given area.
3. Price and availability of related goods
Goods that are related tend to influence each other's demands.
Related goods and services are of two types: Substitutes and
Complements.
Substitutes are goods that compete with each other such as meat and
fish.
Complements are goods that are used jointly, like cement and steel
bars.
4. Preferences or taste
People of different cultures vary in taste and preferences. A large
ethnic group, for instance, has a taste for mixing their food with strong
dose f spices. In another light, some groups of people prefer to spend
a large part of their incomes on luxuries even if necessities are not
satisfied.
5. Special influences
Certain developments influence demand for certain goods and
services. Heat and humidity. For instance, contribute to the demand
for air-conditioning equipment and light clothing.
6. Expectations about future economic conditions
When people expect changes in the economy, their reaction will
affect the demand for certain products.
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