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NotesEconomicsTopic 2.1Determinants of demand
Back to Economics Topics
2.1.28 min read

Determinants of demand

IB Economics · Unit 2

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Contents

  1. 1What shifts the demand curve
  2. 2Five things that shift demand
  3. 3Exam-style question

Picture the bubble tea café next to your school. Two different things can happen.

Scenario 1: the price changes

  • Only the price of a cup changes.
  • Buyers move along the same curve D.

Our example (made-up numbers)

Price of a cup€7€5€3
Cups wanted per week204060

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Scenario 2: something else changes

  • The price stays at €5. Students get more pocket money.
  • The whole curve shifts, D1 to D2.

Our example (made-up numbers)

Price of a cup€5€3
Cups wanted before4060
Cups wanted after (more pocket money)6080

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Remember it as: Own price: slide along. Anything else: shift.

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Five things other than the price shift the whole demand curve.

What shifts the demand for bubble tea

1

Income rises

Students earn more from weekend jobs, so they can afford more bubble tea.

Shifts right →
2

Tastes and preferences turn against it

A news report says bubble tea is full of sugar, so fewer students want it.

← Shifts left
3

Prices expected to rise

The café says prices go up next month, so students buy more now, before the rise.

Shifts right →
4

Price of a substitute rises

Smoothies become more expensive, so some smoothie drinkers buy bubble tea instead.

Shifts right →
5

Number of consumers rises

A new school opens next door, so there are more students to buy it.

Shifts right →

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The points to remember

  • Each one changes how much is wanted at every price.
  • In an answer, say which way the curve shifts and why.

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Paper 1 asked this in November 2025, as part (a) for 10 marks.

IB-style questionExplain[10 marks]

Explain two non-price determinants that could decrease the market demand for a good.

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What the diagram must show

  • Both axes labelled: Price (P) and Quantity (Q).
  • The curve before the change: D1.
  • The new curve D2, to the left of D1, with an arrow.
  • Q1 → Q2 at the same price P1.
  • In your writing, say D1 shifts left to D2 and why.

How the 10 marks are given

MarksWhat your answer needs
9–10Both parts fully explained, terms used correctly all the way through, the diagram included and fully explained
7–8Both parts explained, terms mostly right, the diagram included and explained
5–6Partly explained, some terms, the diagram included
6 at mostOnly one of the two parts answered, however good it is

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between a normal good and an inferior good. [2 marks]

Related Economics Topics

Continue learning with these related topics from the same unit:

2.1.1The law of demand2.1.3Substitutes and complements2.1.4Movements vs shifts of demand2.2.1The law of supply
View all Economics topics
Improve your exam techniqueCommand terms, paper structure, and mark-scheme tips for Economics
Previous2.1.1The law of demandNextSubstitutes and complements2.1.3

18 practice questions on Determinants of demand

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