Laws of Demand

To regulate government policies

To determine how resources are allocated

To promote cultural traditions

To control population growth

As price increases, demand increases.

As price decreases, demand decreases.

As price increases, demand decreases.

As price decreases, demand stays the same.

When the price of a good decreases, quantity demanded decreases

When the price of a good decreases, quantity demanded increases

Changes in income

Changes in consumer expectations

Changes in population

Changes in the price of the good itself

Compliments are used in place of each other, substitutes are used together.

Compliments are bought and used together, substitutes are used in place of each other.

Both are bought and used together.

Both are used in place of each other.

Buying less cola when the price increases

Buying more luxury cars when income rises

Continuing to buy milk even when the price increases

Buying more generic brands when income falls

Availability of substitutes

Limited budget

Advertising strategies

Change over time