Price and demand of a good have inverse relationship. An increase in the prices of a good will lead to fall in the demand of a good and viceversa.
immediate demand for a good will go up if it's price is expected to rise. this is how population changes affect demand for certain goods.
Demand shifts if any determinant except the good's own price changes. Shifters include changes in income, changes in the prices of related goods, the number of consumers, and expectations of future prices.
Given supply, if demand of any good increases it raises the prices of the good.
A good's demand is considered perfectly inelastic when that good's demand does not change, no matter the price set. No matter how big or small the price change is. I would pay any price for air.
Increases in income allow for more disposable income which increases spending and the demand for goods. Decreases in income conversely decreases disposable income which decreases spending.
immediate demand for a good will go up if it's price is expected to rise. this is how population changes affect demand for certain goods.
Demand shifts if any determinant except the good's own price changes. Shifters include changes in income, changes in the prices of related goods, the number of consumers, and expectations of future prices.
Demand shifts if any determinant except the good's own price changes. Shifters include changes in income, changes in the prices of related goods, the number of consumers, and expectations of future prices.
Given supply, if demand of any good increases it raises the prices of the good.
A good's demand is considered perfectly inelastic when that good's demand does not change, no matter the price set. No matter how big or small the price change is. I would pay any price for air.
Increases in income allow for more disposable income which increases spending and the demand for goods. Decreases in income conversely decreases disposable income which decreases spending.
given that the demand curve is for a normal good then this is the case as prices increase people will be willing to consume less of the good. If the good is a giffen good then this will not be the case an in fact the demand curve may either remain straight or will curve upwards as prices increase.
Expectations of future events affect the current demand for a good or service.
The higher the price the larger the quantity produced, as the price of a good raises existing firms will produce more to earn additional revenue.
Complement goods are those goods which uses collectively or side by side e.g petrol and cars. If the demand of one good changes then demand of other good move in the same direction. If the price of product complementary falls then the demand of complementary product increases according to the demand law which in turn increase the demand of product. Suppose the prices of petrol falls which will increase the demand of petrol which in turn in increase the demand of cars.
When there is high preferences for taste of a certain product, example chicken meat, even if prices rises demand will not fall significantly, vice versa when taste and preferences changes from Good A to Good B, even if the price of good A falls drastically, demand would not rise significantly. -Johancsy
The 5 factors that affect the demand of fast moving consumer good include the price, quality, availability, competition and the use of the products. There are many other factors that affect the demand for such commodities