Affecting Factors
The demand for a good depends on several factors, such as Income, Seasonality, External Economic Environment, Advertising and branding and changes in taste, fashion and preferences.
Income
When income is increased, the demand curve for necessary goods will shift to the right as more will be demanded at all prices. While the demand curve for luxury goods with shift right due to the increase in demand for more expensive substitutes.
Advertising and Branding
Good adverting will increase the demand for most product or service, therefore the demand curve will move to the right. However, bad publicity could lower demand the therefore the curve will move to the left.
Seasonality
As the seasons, change the demand will change for certain products and services. For example, in summer the demand for sun cream will go up and the curve will move to the. However, the demand in the winter will go down and therefore the demand curve will move to the left.
External Economic Environment
External economic environment effects demand. For example, the corona virus caused an increase of demand for hand sanitizer, so the demand curve for hand sanitizer moved to the right. Similarly the demand for a travel agents went down so the curve moved to the left.
changes in taste and fashion and preferences
If a certain product or service becomes popular, the demand for it will go up and therefore the demand curve will shift right. Likewise if a product or service loses its popularity demand will go down and therefore the curve will move to the left.
