Question:

Can anyone give examples on the "Special Influences" and "Government Laws and Policies" influencing Demand?

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Here's what our professor told us as the determinants of demand:

-income

-complimentary substitute

-price of related goods

-population

-expectation for price

-seasons/climates

-peace and order

-quality/quantity

-promotions

-advertisement

-technology

-taste and preferences

-government laws and policies

-special influences

we are asked to site situational examples on each of it.

i've found examples,really and it was easy but i couldn't find an example on "special influences". I'm confused on it's real definition. Can anyone help me? it will be passed on friday and i'm researching for it,every now and then...

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  1. Special influences  example is the outcome of the focus on the environment and the impact of climate change: there is a much bigger interest and demand in "green commerce" (i.e. all things green).  If this interest lasts it would move from a special influence to taste/preferences or one of the other categories.  Another special influence example, could be the impact of the Olympics on demand (particularly local demand for the city hosting the Olympics).  

    Government laws and policies:  how about advertising laws and restrictions on sale of alcohol and/or cigarettes:  in youth it might actually increase demand (because these are restricted items by age); in of-age buyers it might decrease demand as the written warnings on cigarettes and advertisements might have some impact (in Canada there are some pretty stringent laws against advertising cigarettes - pretty hard for cigarette manufacturers to build their brand and drive demand....one of the reasons their growth is now in the unrestricted countries, e.g. China).

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