Determinants of Demand include the following: (a) Changes in supply (b) Prices of goods related in consumption (c) Prices of resources (d) Consumer tastes (e) Consumer income (f) Number of buyers (g) Number of sellers (h) Expectations, including expectations of future changes in supply (i) Expectations, other than expectations about future supply
Determinants of
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(a) Changes in supply |
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(b) |
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(c) Prices of resources |
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(d) Consumer tastes |
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(e) Consumer income |
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(f) Number of buyers |
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(g) Number of sellers |
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(h) Expectations, including expectations of future changes in supply |
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(i) Expectations, other than expectations about future supply |
Demand refers to the quantity that consumers are willing to buy at specific point of time .
Demand is inversely related with price .
b . Price of related goods
it consists substitute and complimentary goods price .
Substitute goods like tea and coffe . If price of coffe rises then demand for tea increase and vice versa .
Complimentary goods like pen and ink . If ink price rise then demand for pen will decrease and vice versa.
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