Economics, 3rd Edition

Expectations of Consumers 

Expectations about the future may affect the demand for a good or service 

today. For example, if it was announced that the price of milk was expected to rise next month consumers 

may be more willing to buy milk at today’s price.

Summary 

The demand curve shows what happens to the quantity demanded of a good when its price 

varies, holding constant all the other variables that influence buyers; when one or more of these other 

variables changes, the demand curve shifts. Table 3.1 lists all the variables that influence how much con-

sumers choose to buy of a good.