Know what things make a change in quantity demanded

1. Price: The most obvious factor that affects the quantity demanded of a good or service is the price. When the price of a good or service rises, the quantity demanded for it usually decreases. Conversely, when the price of a good or service falls, the quantity demanded usually increases. This is known as the law of demand. 2. Income: Another important factor that affects the quantity demanded is the consumer's income. In general, as a consumer's income increases, the quantity of goods and services demanded increases as well. This is known as the income effect. 3. Prices of Related Goods and Services: The prices of other goods and services also affect the quantity demanded. Substitutes are goods or services that can be used in place of one another. As the price of a substitute increases, the quantity demanded for the good in question usually increases. Complements, on the other hand, are products that are often used together. As the price of a complement increases, the quantity demanded for the good in question usually decreases. 4. Tastes and Preferences: The tastes and preferences of consumers also affect the quantity demanded. For example, a trend of health consciousness might lead to an increase in the quantity of organic produce being demanded. 5. Expectations: Consumers also base their purchasing decisions on their expectations about how the price of a good or service will change in the future. If a consumer expects the price of a good or