Ceteris Paribus Conditions for Demand:

 

Tastes and Preferences – Example: A change in tastes away from fatty foods has decreased demand for salt pork or bacon.

 

Expectations - Example:  If I expect that the value or price of a stock will increase in the future I will buy more now at the current price.

 

Prices of Related Goods: Substitutes and Complements

 

Substitutes:  Assume that a Ford is a substitute for a Honda: If the price Hondas increases, then some potential Honda buyers will switch to (substitute) Fords.  Demand for Fords will increase (shift to the right), holding all other factors constant (ceteris paribus).

 

Complements:  Assume that gasoline and cars are complementary goods:  If the price of gasoline increases, then demand for cars will decrease (shift to the left).

 

Income: Normal and Inferior Goods

 

     Normal Goods: If income increases, then consumption increases

      

       Inferior Goods: If income increases, then consumption decreases

 

Weather - Example:  Snow will increase the demand for snow skis.  Rain will increase the demand for taxis.

 

Population - Example:  An increase in population will shift the demand curve to the right.

 

Note:  This is not an exhaustive list, but the most common ceteris paribus conditions for demand found in typical economics textbooks.