"Changes in the Demand Environment"

Task #1: Consumer Income (Increase)

When consumers find that they have an increase in income, they tend to have more spending money and will therefore cause the demand of some objects to increase. More specifically  it will cause the demand of objects to increase if they were too expensive and too much of a luxury when consumer income was low. An example of a product with this kind of demand is Starbucks Coffee. If consumers don't have money, they will make their own coffee at home. However, when their income increases, they will be able to purchase more expensive coffees from places like Starbucks.

Task #2: Consumer Tastes

When consumer tastes change for a certain product, the demand will change as well. For example, at the moment, gluten-free bread and other products are very popular and there is a high demand for them. If gluten-free bread were to suddenly become unpopular or something new were to replace it, then consumer tastes would change and we would see a decrease in demand for the product. Whatever product made the gluten-free products unfavorable would then see an increase in demand and gluten-free products would lose profit.