Suppose we are thinking about demand for new European convertibles. Such cars are typically more expensive than the average auto and therefore, would be normal or luxury goods. What factors could cause the demand curve for such autos to shift out, meaning more would be demanded at every price? It's pretty easy to come up with some possibilities.

    These might include: an overall increase in consumers incomes, an increase in the price of American made convertibles (increase in the price of substitutes), an expected increase in the price of European convertibles in the near future, predictions of a beautiful summer (like a decrease in the price of complements), and more movies in which the main character drives a European convertible (change in tastes).

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