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Five situations of price increase in western economics
Price, preference, income, related commodity prices, expectations.

1. Other things being equal, the lower the price of a commodity, the greater the consumer's demand for it; The higher the price of a commodity, the less demand consumers have for it. This is what economics calls the law of demand. Commodity price is the most important factor affecting the demand of commodity market.

2. Preferences The preferences mentioned here are not only related to consumers' personal hobbies and personalities, but also related to the whole social customs, traditional habits and fashions. The demand for some time-sensitive goods (such as fashion and music records) is very sensitive to social preferences. Even if the price remains the same, the demand will change greatly due to the change of social fashion and fashion.

3. Income Generally speaking, income and demand are positively related, that is, under the same other conditions, the higher the income, the more the demand for goods. This is because higher income represents higher purchasing power and ability to pay, and demand is restricted by ability to pay.

4. The price demand of related commodities depends not only on the price of the commodity itself, but also on the prices of other commodities to some extent. Among other commodities, there are two kinds of products that have the greatest impact on prices. One is substitutes, that is, goods that can be substituted for each other to a considerable extent in consumption. Generally speaking, the higher the price of a substitute for a commodity, the cheaper it appears, so the demand for this commodity will increase, and vice versa. The second is complementary products, that is, goods that are often consumed together. When the price of supporting products of a commodity rises, the demand for this commodity will also decrease.

5. Expectation The expectation mentioned here does not refer to the individual expectations of consumers, but to the expectations of social groups that have an impact on commodity demand, regardless of whether this expectation is correct or not. If it is widely expected that the price of a commodity will rise sharply in the future, it will increase current consumption or buy more and store more. The expected effect sometimes leads to the abnormal phenomenon that the higher the price, the greater the demand. This is because people generally have the psychology of "buying up and not buying down".