Question

Demand, law of demand , and factors affecting law of

Answer 1

Demand: In economics

refers to a consumer's desire to purchase goods and services and willingness to pay a price for a specific good or service. 

The law of demand: states that other factors being constant (cetris peribus), price and quantity demand of any good and service are inversely related to each other. When the price of a product increases, the demand for the same product will fall.

The five determinants of demand are:

1.The price of the good or service.

2.Income of buyers.

3.Prices of related goods or services. These are either complementary, those purchased along with a particular good or service, or substitutes, those purchased instead of a certain good or service. 

4.Tastes or preferences of consumers.

5.Expectations. These are usually about whether the price will go up.

For aggregate demand, the number of buyers in the market is the sixth determinant.

Answer 2

Answer:

ʏᴏᴜʀ ǫᴜᴇsᴛɪᴏɴ :-

• what is Demand?
• what is law of demand?
• and what are the factors affecting law of demand?

ʜᴇʀᴇ ɪs ʏᴏᴜʀ ᴀɴsᴡᴇʀ :-

What is Demand :-

Demand for any commodity refers to the quantity of that commodity which consumers are willing and able to purchase at different prices during a given period of time.

What is Law of Demand :-

In our day to day life, we observe that when the price of the commodity is high, a lower quantity of it is purchased and when the price is low, the quantity purchased is more. This phenomenon of inverse relationship between price and the quantity of the demand is called Law of demand.

Factors Affecting Demand :-

Individual Demand :-

1. Price of the commodity
2. Income of the consumer
3. Consumers' taste and Preference
4. Consumers' Expectations
5. Price of Related goods
6. Consumer-credit Facilities
7. Demonstration Effect

Market Demand:-

All determinants of individual demand and in addition:

1. Size and composition of Population
2. Distribution of Income
3. Climatic Factors
4. Government Policy

Hope it's helpful

Answered by :-

@MissInfinite