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Explain The Factors Which Are Likely To Affect The Demand For: i) Pianos ii) Chocolate iii) Designer clothes in the UK market.

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Explain The Factors Which Are Likely To Affect The Demand For: i) Pianos ii) Chocolate iii) Designer clothes in the UK market. Any change in the price of a good or service will cause an extension or contraction (along) of the demand curve. If a factor other than price changes, the entire demand curve will shift left or right. The main determinants of demand for a piano include; Advertising, price of substitutes, fashion and taste change, taxation, income, raw material availability and price, success of famous pianists. If an advertising campaign was launched for pianos, then the demand curve would shift to the right, as an increase in the demand of pianos would be the probable result. If the price of substitutes decreased, for example a top of the range key-board company reduced there prices significantly then the demand curve for a piano would shift to the left. However if the top of the range key-bord company's prices increased then it is likely that the demand curve will shift to the right because a piano is the superior product and so people may be willing to spend a little more in order to gain more satisfaction as the relative price of the piano decreased. If the fashion was to have a piano or if piano music was in-fashion then the demand curve for a piano would shift to the right, because people may wish to purchase a piano, to enjoy classical music. ...read more.


Finally the demand curve may shift to the right because of the success of a famous musician. For example, a pianist touched the nation with outstanding performances, and therefore giving many young men and women inspiration to become a famous pianist, which leads to an increase demand in pianos. The main determinants of demand for chocolate are: Advertising, Price of substitutes, Health factors. Other less major determinants are: taxation, income and the weather. This is because chocolate is a less expensive product and in a sense a non-luxury product as, for example a sports car is. A persuasive advertising campaign will shift the demand curve to the right because people will get the urge to consume chocolate more often if they are reminded more frequently. However if substitutes such as toffee and candy bars advertised then demand curve could shift to the left, because people will be urged and persuaded to consume substitutes. Price of substitutes will also have an affect on the demand curve if toffee, for example goes up twice as much as chocolate then people and retailers would buy more chocolate instead as chocolate's relative price will attract more attention. Chocolate is a superior product to candy and so the customer satisfaction will increase. However the reverse is true. If candy bars were to lower prices, then the relative price of chocolate would rise, and consumers would be put off and use the cheaper alternatives. ...read more.


However if the suit (x) was seventy-pounds then the relative price is increased and the consumer would purchase suit (x) because it would not be worth paying an extra one-hundred-thirty pounds. Income is important because, designer clothes are luxury products and so rely on consumers disposable income. If there income is increased then people will purchase more clothes, as they have more disposable income. However if people's income falls then they are less likely to purchase luxury products such as designer clothes, thus shifting the demand curve to the left as opposed to the increase in income where upon the demand curve would shift to the right. If taxation was to rise then once again, this would decrease the consumers disposable income, forcing them to spend less on luxury products such as designer clothes and so indeed the demand curve would shift to the left. The demand curve would shift to the right however, If taxation was reduced, as consumers would have more disposable income. Taste and fashion will possibly affect demand, although designers are constantly working to keep up to date with fashion. Obviously advertising campagne will shift demand to the right. Reputation will also have a small affect. If a firm uses cheap labour and exploits workers then there could be a decline in demand. However if all clothes produced are not from sweat shops then demand could be higher. Some shifts will be bigger than others but all factors will shift the demand curve, even if only a tiny amount. Chris Swainland 08/05/07 ...read more.

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