A market will grow if there is sufficient demand to make supplying an item profitable. Demand is a measure of how much of a product or service consumers actually buy in a market. Population structures of regions can effect the level of demand, in Britain for example has an ageing population which is increasing in number which means that businesses are going to focus their product appeal on this large sector of the population which offers a higher mount of sales revenue and profits.
Tastes can have an affect on demand as consumer preferences for products or types of proucts will change the level of demand for products, generally tastes or trends shift over time due to the influence of advertisers who can successfully persuade us to want a certain product. Advertising is one form of non-price competition, which businesses use to be competitively ahead of rivials, by the means of using a factor other than price e.g. quality, innovation, differentiation,promotion. Successful nonprice competition can often lead to healthy profit margins.
On a Demand Curve, if the demand curve shifts to the left it means that demand has decreased and if the curve shifts to the right it means that demand has increased.
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