Okay, let’s stop holding everything else equal. Aside from movements in prices, what factors might cause a change in the demand for a product such as beef?
Overall demand can change, moving upward or downward, because of changes in:
• Prices of other goods and services
• Perceptions of future prices
In Chapter 1, I mentioned that people express their preferences in the transactions they enter into. Some people like beef and some don’t. Moreover, people’s preferences can, and usually do, change over time. For instance, demand for beef can increase or decrease because of social trends—say, toward or away from steakhouse dining or vegetarianism—and health concerns—beef is high ...