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A demand for a product is when a customer expresses a desire or willingness to purchase a product. It is the amount of a product that customers are willing to buy at a specific price. Generally the demand for a product is determined by the price of the product the customers income the availability of a substitute and the customers preferences. When the price rises demand falls and when the price decreases demand increases.

Factors that affect the demand for a product include:

  • Price of the product
  • Customers income
  • Availability of a substitute
  • Customers preferences

If the price of the product rises then the demand for the product falls and vice versa. This is due to the fact that customers are willing to pay a certain price for a product and when the price increases customers will be less likely to purchase the product.

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Elroy Murazik

Lvl 10
2y ago

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