Demand and Price Elasticity of Demand Bordeaux Wine Free Essay Example, 2000 words

Increasing the price of complimenting products will lower the demand of the product thus shifting the curve towards the left side. On the other hand, increasing the substitute s price would increase the demand of the wine thus shifting the curve towards the right side. The third shift factor is the income of the consumers. Whenever the income of consumers increases, the demand for the product would increase hence the demand curve would shift towards the right. The fourth shift factor is the population of potential buyers. Increasing the market size or the population of the buyers would increase the demand of the product thus shifting the curve towards the right (Braeutigam, K.2005). The last shift factor is price change expectations. When there is some news report which predicts an increase in future prices of the product would tend to increase the current demand of the product as the consumers would increase the quantity of the product that they would purchase while expecting a pri ce change. This would have an effect of shifting the graph towards the right (Fair, C.We will write a custom essay sample on Demand and Price Elasticity of Demand: Bordeaux Wine or any topic specifically for you Only $17.96 $11.86/page Next, early reports argue out that the finishing wine in Bordeaux could be an excellent vintage. For Bordeaux vintners, this is not true since the financial thunderstorms following the past six months have reduced those individuals who felt that they were wealthy to drink chateau la mission at about 5,500 a case. This is a clear indication that the income of the consumers has reduced. A reduction in the income of the consumers would reduce the demand for the product since few individuals would be having money to purchase the product.