Principles of Macroeconomics / Unit 2 MAC 0113 short lesson, about 20 seconds
Tastes, Population and Buyer Expectations
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The idea
Demand also shifts with tastes and preferences, with the size and make-up of the population, and with what buyers expect prices to do next.
In practice
Expecting a price rise tomorrow, buyers fill the tank today, which raises demand now.
Where people slip
An expected future price change shifts demand in the present, which is why expectations sit on the shifter list rather than on the curve.
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