What factors determines demand?

Answer 1

The factors that can influence demand are the price of the good (the lower the price the higher demand and vice versa), income (higher income generally means a higher demand), market competition, tastes such as fashion, seasonal factors for example if its Christmas people will demand things associated with Christmas and in Winter people may demand winter wear etc.

Answer 2

= = vPrice of the good X (Px)

vPrice of complementary goods (Pc)

vPrice of substitutes (Ps)

vConsumer's income (Y)

vConsumer's taste for the good (t)

vConsumer's expectations about future prices (E)

vAdvertising (A)

vTaxation (T)

v Number of buyers (influenced by population/market size - age and sex distribution) (B)

vOther relevant factors (Z)

Demand Function: Dx = f (Px, Pc, Ps, Y, t, E, A, T, B, Z)

Answer 3

Determinants of demand (for one good)

-Change in price (due to simple demand law interaction)

-Change in fashion

-Price of substitute/compliment goods

-Change in income level (inferior and normal goods)

-Consumer's expectation in income change

Answer 4

• Change in Consumer Price Expectations: If people expect the price to go up later, they'll buy more now and less later. If they expect the price to go down, they'll buy less now and more later.

• Change in Consumer Income: If people make more money, they can buy more goods.

• Change in Consumer Tastes: If people like a good more based on advertising or experience, they'll buy more. If they like it less, they'll buy less.

• Change in Number of Consumers in the Market: If there are more people buying things, there will be more demand. If there are less people to buy things, there will be less demand.

• Change in Price of a Substitute Good: If the price of a substitute good, or something you buy instead of something else, goes down, you'll buy less of the original good and more of the substitute.

• Change in Price of a Complementary Good: If the price of a complementary good, or something you need/use with another, goes up, you'll buy less of the original good. Example: If DVD's rise in price, people will buy less DVD players.

Answer 5

price of the commodity demand

Answer 6

Factors affecting demand

Answer 7

Demand