TINCSTEP

1
TINCSTEP

• The Big 8 non-price determinants of demand

2
Time/Season

• Does the demand for bathing suits increase or
  decrease in the winter in New England?
• DECREASE

3
Income

• Due to state budget cuts, several state workers
  are laid off causing a decrease in their income.
  Would this increase or decrease the quantity
  demanded of a product?
• Decrease

4
Need

• Would the quantity demanded of batteries during a
  hurricane storm increase or decrease?
• INCREASE

5
Complement

• When two products complement each other, If you
  dont purchase one of the products, would it
  impact the quantity demanded of the other?
• Yes
• If the price of hot dogs goes up drastically,
  would the quantity demanded of hot dog rolls
  increase or decrease?
• Decrease

6
Substitute

• When the price of one product goes up
  substantially and you replace it with a similar
  product.
• Ex. Price of Coke goes up to 4.00 for a 2-liter
  bottle. You replace it with Pepsi.

7
Taste

• Advertising affects taste. The demand for a
  product due to advertising increases for a short
  period of time while people are trying the
  product. The demand will most likely decrease
  after a period of time.
• Ex. Vanilla coke

8
Expect

• Future outlooks affect the quantity demanded of
  an item.
• Ex. The farmers almanac predicts a snowy winter
  this year. Will the demand for snow shovels
  increase or decrease?
• Increase

9
Population

• The Baby boom is a prime example of an increase
  in population. This resulted in the need for
  more schools, etc.
• Would there be an increase or a decrease in the
  demand for more teachers if the town of
  Northborough had an additional 300 students
  entering the school system next year?
• Increase

10
Shift in Demand

• Lets plot the change in demand for each
  TINCSTEP.

11
Time

• D1 represents to demand for bathing suits in
  June.
• We already said that the demand for bathing
  suits in December in New England would decrease.
  Lets plot the change in demand.
• D2 is the demand for bathing suits in December.

D1
D2
12
Income

• The income for state workers decreases due to
  layoffs. As such, the demand for products
  decreases because of a decrease in their income.
• D1 represents the demand for products before a
  state workers layoff.
• D2 represents the demand after the layoff.

D1
D2
13
Need

• D1 represents the need for batteries a month
  before a hurricane.
• D2 represents the need for batteries the day
  before a hurricane.

D2
D1
14
Complement

• D1 represents the demand for hot dog rolls before
  the price of hot dogs increases.
• D2 represents the demand for hotdog rolls after
  the price of hot dogs increases.

D1
D2
15
Substitute

• D1 represents the demand for Pepsi before the
  price of Coke increases
• D2 represents the demand for Pepsi after the
  price of Coke increases.

D2
D1
16
Taste

• D1 represents the demand for vanilla coke before
  a big advertisement campaign.
• D2 represents the demand for vanilla coke right
  after the advertisement campaign.

D2
D1
17
Expect

• D1 represents the demand for snow shovels before
  the farmers almanac predicts a snowy winter.
• D2 represents the demand for snow shovels after
  the farmers almanac predicts a snowy winter.

D2
D1
18
Population

• D1 represent the demand for teachers before a
  population increase in Northboro.
• D2 represents the demand for teachers after a
  population increase in Northboro.

D2
D1