Conclusion of factors affecting demand
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shortage of product and increasing member of buyer affect demand
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1) Price of the product/service : The Demand for a product is inversely proportional to its price..So Increase/Rise in the price of a commodity leads to fall of its Demand and vice versa..
2) Tastes and Preferences of consumers/customers : Goods which are more popular/fashionable command higher Demand than other Goods.. Consumers may even discard a product/service even before it is fully utilised and Prefer another good (popular) .. Eg : there is a greater Demand for Smart phones and more people are discarding their feature phones even though they could have still used it For some more years..
3) Income of the Consumer/customer/household: larger the average income, the larger is the quantity demanded of a particular product/service..but there are few Goods for which Demand decreases with an increase in price.. eg..inferior Goods ... For some other Goods Demand remains unchanged..eg: basic necessities..
4) price of related commodities: 1) completementary Goods 2) Substitutes ... Complementary Goods are those Goods which are consumed Together or simultaneously...eg:tea,sugar.. so fall in price of one product increases the Demand of the other product..... Substitutes are Goods which can be used with ease in place of one another...eg : tea and coffee... So the increase in price , increases the Demand of the other product
5) Demographic Factors: larger the size of population of a country ,greater is the Demand for products... Education,marital status,consumers' expectation,Age Group of consumers.. alsoo affect the Demand for a particular product...
2) Tastes and Preferences of consumers/customers : Goods which are more popular/fashionable command higher Demand than other Goods.. Consumers may even discard a product/service even before it is fully utilised and Prefer another good (popular) .. Eg : there is a greater Demand for Smart phones and more people are discarding their feature phones even though they could have still used it For some more years..
3) Income of the Consumer/customer/household: larger the average income, the larger is the quantity demanded of a particular product/service..but there are few Goods for which Demand decreases with an increase in price.. eg..inferior Goods ... For some other Goods Demand remains unchanged..eg: basic necessities..
4) price of related commodities: 1) completementary Goods 2) Substitutes ... Complementary Goods are those Goods which are consumed Together or simultaneously...eg:tea,sugar.. so fall in price of one product increases the Demand of the other product..... Substitutes are Goods which can be used with ease in place of one another...eg : tea and coffee... So the increase in price , increases the Demand of the other product
5) Demographic Factors: larger the size of population of a country ,greater is the Demand for products... Education,marital status,consumers' expectation,Age Group of consumers.. alsoo affect the Demand for a particular product...
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