Map of Capinopolis on When consumers become less interested in a product regardless of that product’s price, demand will fall. Utility theory predicts then that only changes in the utility associated with a particular product will lead to changes in demand. Utility or the satisfaction derived from consumption is a function of how much an individual wants or needs a product and may be influenced by a myriad of factors including individual preferences, quality of the commodity, style, weather, age, tastes, gender, geographic location, advertisements, prices of related commodities, etc. Changes in any one of these factors will make an individual more or less interested in a product regardless of price and consequently will lead to changes in demand. Another approach to understanding demand involves the use of indifference curve analysis. Indifference curve analysis and utility theory are not unrelated. The former is in fact a graphical representation of the latter. Map of Capinopolis 2016.
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