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1.2 (Demand ((A substitute product acts as an alternative, therefore…
1.2
Demand
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Changes in the prices of substitutes and complementary goods can affect the demant for other similar products as cosumers would likely be inclined to purchse the cheaper alternative
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fashions, tastes and preferences can change which leads to demand changing
different demographics like age and gender will have a role when it comes to the demand of goods and services.
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External shocks are unexpected events that are outside of the businesses control but have a direct impact on the level of demand
A substitute product acts as an alternative, therefore creating competition
If the price of good A increases, the demand for good B will increase e.g. Coca-Cola and Pepsi Cola
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If the price of good A increases, the demand for good B will decrease e.g. fish and chips
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Income elstacity of demand 
Income elasticity of demand can be negative or positive i.e. income and demand can move in the same direction or opposite directions
Income elasticity of demand (YED) is a measure of the responsiveness of demand to a change in income
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Supply
Changes in the cost of manufacturing like the incrase in raw material costs might lower the amount of items being produced
Introduction of new technology can make manufacturing much more efficient meaning that were would be a higher supply of products produced
indirect taxes can reduce the amount of goods produced as its a tax levied on goods and services rather than on income or profits.
government subsidies can increase supply as the businesses would have more emmorny to spend on manufacturing