2.1.5—Non-price determinants of demand

Income, tastes, prices of substitutes and complements, expectations, population and advertising can change demand at every price.

A substitute becoming more expensive can raise demand for this good; a complement becoming more expensive can reduce it. The effect depends on whether the good is normal or inferior.

Name the determinant, its direction and the resulting demand shift before predicting quantity.

If bus fares rise, demand for train travel may increase if buses are substitutes; if petrol rises, demand for large cars may fall.

Do not call a price change of the good itself a non-price determinant.