Factors affecting demand include the good's own price, the price of related goods, personal disposable income, consumer tastes and preferences, consumer expectations about future prices and income, and the nature of the good.
All of these factors work together to determine the buyer's demand curve.
The market demand curve is the horizontal sum of individual buyers' demand curves. Aggregation introduces three additional non-price determinants of demand: the number of consumers; the distribution of tastes among the consumers; and the distribution of incomes among consumers of different tastes.
Factors that affect individual demand can also affect market demand, but net effects must also be considered.
1.Quality
2.Distance of market from locality
3.Markets offering less Price/Rates
when price changes it is called inelastic demand and when quantity of demand change that is called elastic of demand.
These factors mean that quantity will increase at a more than proportionate amount to price.
elastic
perfectly elastic demand the quantity change by infinitely large amount proportion due to the small change in price, is called perfectly elastic demand. perfectly inelastic demand the quantity demand doesn't change at all due to the change in price is called perfectly inelastic demand. relatively elastic demand the quantity demand changes by a little more percentage than the change in price is called relatively elastic demand. relatively inelastic demand the percentage change in quantity demand is less than the percentage change change in its price is called relatively inelastic demand unitary elastic demand the percentage change in quantity demand is equal to the percentage change in price is called unitary elastic demand
When Demand is perfectly elastic, Marginal Revenue is identical with price.
when price changes it is called inelastic demand and when quantity of demand change that is called elastic of demand.
These factors mean that quantity will increase at a more than proportionate amount to price.
The demand is elastic when the price is low. So people will buy more good so that it's demand will become more elastic. Moreover ,the demand is elastic when there are some new inventions.
elastic
perfectly elastic demand the quantity change by infinitely large amount proportion due to the small change in price, is called perfectly elastic demand. perfectly inelastic demand the quantity demand doesn't change at all due to the change in price is called perfectly inelastic demand. relatively elastic demand the quantity demand changes by a little more percentage than the change in price is called relatively elastic demand. relatively inelastic demand the percentage change in quantity demand is less than the percentage change change in its price is called relatively inelastic demand unitary elastic demand the percentage change in quantity demand is equal to the percentage change in price is called unitary elastic demand
When Demand is perfectly elastic, Marginal Revenue is identical with price.
Elastic demand means something increases or decreases as the price of an item goes down or up.
there are five types.1).perfect elastic demand,2)perfect inelastic demand,3).relatively elastic demand,4).relatively inelastic demand4).unity elastic demand
if a price cut decreases total revenue, demand is elastic. if a price cut decreases total revenue, demand is inelastic. if a price cut leaves total revenue unchanged, demand is unit elastic.
elastic
elastic
increase