Changes in fashions and tastes of consumers will shift the market demand from existing product to new ones.

Changes in fashions and tastes of consumers have a significant impact on the market demand for products. As consumer preferences change, their demand for certain products will increase or decrease. This ultimately leads to a shift in the market demand from existing products to new ones. Let's explore this in detail.

1. Consumer Preferences:
- Consumer preferences are constantly evolving due to various factors such as changing trends, social influences, and personal tastes.
- For example, a certain style of clothing might be popular one year but lose its appeal the next year as new fashion trends emerge.
- These changes in consumer preferences directly affect their demand for products. As consumers seek out new and trendy products, the demand for existing products declines.

2. Shift in Market Demand:
- When consumer preferences change, the demand curve for a particular product shifts.
- If the new preferences indicate a higher demand for certain products, it leads to a rightward shift in the demand curve.
- On the other hand, if the new preferences indicate a lower demand for certain products, it leads to a leftward shift in the demand curve.
- As a result, the market demand for existing products decreases, and the demand for new products increases.

3. Impact on Existing Products:
- When consumer preferences change, existing products may become less popular and face a decline in demand.
- This can lead to excess inventory, reduced sales, and lower profitability for companies that produce these products.
- To adapt to the changing market demand, businesses may need to adjust their production, marketing, and distribution strategies or even discontinue certain products.
- They may also need to invest in research and development to create new products that align with the changing consumer preferences.

4. Opportunities for New Products:
- As consumer preferences change, new opportunities arise for businesses to introduce innovative products that cater to the new market demand.
- By identifying emerging trends and understanding consumer preferences, companies can develop and market products that align with these changes.
- This can lead to increased sales, market share, and profitability for businesses that are able to successfully meet the evolving consumer demands.

Conclusion:
In conclusion, changes in fashions and tastes of consumers play a crucial role in shaping the market demand for products. These changes lead to a shift in the demand from existing products to new ones, creating opportunities for businesses to adapt and capitalize on the evolving consumer preferences.