a real world example of how your demandspending or your work

a real world example of how your demand(spending) or your workplace\'s demand (spending) has been affected by the change in the determinant of aggregate demand.

Solution

Let\'s take an example of ice cream. we all love it but the expenditure or the demand for ice creams of one particular brand is more than the demand for the other brands, for example, say, demand for Basking Robins is higher than the demand for Ben and Jerry.

Here, the determinant of demand is taste and preference of the consumer. Now if we discovered a new product of bluebell which we really liked, so our spending on Basking robins will reduce and that is the Bluebell will increase. This is because our determinant of demand that is our personal preference and taste has changed and that changed our spending on ice creams.