MARKET DEMAND
3. Non – Price Factors
a. Substitute products
The demand for a product tends to decrease if the price of its substitute
decreases
Example:
If the price of butter goes up,
the demand for the
margarine will go up
b. Complementary product
The demand for a product should lead to similar demand for other
related product
Example
c. Consumer factors
• Household incomes
If consumer income increases, the demand will fall
increase
Inferior
Normal
goods
• Fashion and consumer expectations