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No - look at the example of motor fuel.
No. The price of a good is not a determinant of demand at all. The price of a good determines the quantity demanded, not the demand.
"The demand" is a curve showing the quantity demanded at each price. If price changes, you simply move up or down the line. The "Demand" does not change, because you are still on the same line.
The strongest determinant of demand is probably the consumer(s)' taste and preferences.
What else can I help you with?
What are not a determinant of demand?
price of the good
Which is not considered to be a determinant of the price elasticity of demand for a particular good?
Expectations of the future price
What causes a change in the demand curve or shift in demand?
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.
What is the relationship between price and demand for a Giffen good?
The relationship between price and demand for a Giffen good is unique because as the price of the good increases, the demand for it also increases. This is contrary to the law of demand, where an increase in price leads to a decrease in demand.
Write a short note on decrease in demand?
A decrease in the willingness and ability of buyers to purchase a good at the existing price, illustrated by a leftward shift of the demand curve. A decrease in demand is caused by a change in a demand determinant and results in a decrease in equilibrium quantity and a decrease in equilibrium price. A demand decrease is one of two demand shocks to the market. The other is a demand increase. A demand decrease results from a change in one of the demand determinants. The leftward shift of the demand curve disrupts the market equilibrium and creates a temporary surplus. The surplus is eliminated with a lower price. The comparative static analysis of the demand decrease is that equilibrium quantity decreases and equilibrium price decreases.
What happens when the price of a good drops?
Supply & Demand, EconomicsEconomic studies tell us that when the price of a good drops, demand will rise. Furthermore, when the price of a good rises, demand will go down.
What factors influence the price of a commodity?
Demand depends on a lot of factors. The price, income of consumer, price of other goods, the price of the complimentary goods, the seasonal factor (in certain cases), advertising, trends and fashion, tastes, population and much more.
Definition for ''law of demand''?
In economics, the law of demand states:- As the price of a good or service increases, the demand for that good or service will decrease.- As the price of a good or service decreases, the demand for that good or service will increases.
What can bring about a change in quantity of demand?
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.
Why does demand fall?
Demand drops when the price of the demanded good rise.But also demand of a certain good may drop when the price of substitute fall
What happens to the demand for the main good if the price of a complementary good increases?
If the price of a complementary good increases, the demand for the main good typically decreases.
What is cross price elasticity demand?
Cross price elasticity of demand measures the responsivenss of demand for a product to a change in the price of another good.
