● Demand is a powerful force in a free market. In three to four sentences, explain some of the factors that cause changes in demand and why it is important for consumers to understand these changes. Demand changes when the quantity demanded at every price changes. This happens when consumers' willingness and ability to buy changes. Demand shifts can be caused by changes in income and in consumer tastes and preferences. Demand is also influenced by changes in the price of a complementary good or in the price of a substitute. Demand shifts cause changes in markets. When consumers understand the basics of demand they understand that their buying choices are important. Consumer demand influences which goods and services are available, the quantities available, and the prices of the goods and services we buy. ● This demand curve has shifted. The original demand curve is labeled as D. The new demand curve is labeled as D1. What change is taking place on this graph? demand is increasing ● As the price per pair of running shoes rises, the quantity demanded is decreasing. ● When the price is $100.00, 60 pairs of shoes are demanded. ● The quantity demanded decreases by 80 when the price increases from $50.00 to $150.00. ● As the price of flat-screen televisions decreases, the quantity demanded increases significantly. Elastic ● As the price of bread decreases, the quantity demanded changes only slightly. Inelastic ● As the price of a drug used to treat heart disease increases, the quantity demanded remains unchanged. Inelastic ● Which factor affecting demand does this scenario illustrate? a change in consumer tastes and preferences ● One factor that influences demand is a consumer's ability to buy a good. What is required for a consumer to have the ability to purchase a good? Income ● The law of demand states that as the price of a good rises, the quantity demanded of that good will decrease. ● As the price of a good falls, the quantity demanded of that good will increase.