Changes in Demand Environment

Consumer Tastes

The triangle plotted points represent the increase in demand from the original demanded. There is an increase in demand at each and every price because the good/service (in this case organic foods) has become more popular with consumers and thus more people are demanding and buying it. The demand environment in this case is experiencing Consumer Taste changes as the price of the good does not change, it is simply the market demand environment. However, price still dictates the curve expressed by the graph as it is natural for more people to buy if the price decreases. As people read more about the benefits of organic food the demand increases.

http://io9.com/5940291/no-organic-foods-arent-more-nutritious-than-other-kinds

http://www.carlyngalerie.com/index.php?cPath=821_825

The triangle plotted points indicate the New Quantity Demanded per month as the circles are the original Quantity Demanded per Month. There is a decrease in the demand at each and every price for this good/service (in this case it is letter openers) and this reflects the demand environment concerning consumer tastes as changing. The utility of letter openers are judged as less by the consumers and thus there is a fall in demand despite the same price. Again, the curve of the graph simply represents the nature of price affecting demand. It is the entire triangle move over which signifies the consumer taste factor in the demand environment. As the use of letters to communicate are replaced by texts, Facebook, etc., the demand for letter openers decrease.