2.3 Factors influencing demand.
 The demand is besides price also influenced by other factors:
- Price of Substitutes (Are rival products) and Complements (Are products that are purchased jointly).
- Consumer income, we need to distinguish between Normal goods (Are demanded more when consumer income increases and less when income falls) and Inferior goods (Are demanded more when income levels fall and demanded less when income levels rise).
- Tastes and preferences
- Price expectations: Are beliefs about how prices will differ from prices today.
The law of demand: States that, ceteris paribus, as the price of the product falls, more will be demanded.