Question

Explain any four factors that affect demand for a commodity. Define demand

Answer 1

Explanation:

an insistent and peremptory request, made as of right is known as demand

As mentioned above, apart from price, demand for a commodity is determined by incomes of the consumers, his tastes and preferences, prices of related goods. ... The other important factor which can cause an increase in demand for a commodity is the expectations about future prices.

Answer 2

Explanation:

Demand is the number of goods that the customers are ready and able to buy at several prices during a given time frame.

The various factors affecting demand for a Commodity :

1. Price of the Given Commodity :

It is the most important factor affecting demand for the given commodity. Generally, there exists an inverse relationship between price and quantity demanded. It means, as price increases, quantity demanded falls due to decrease in the satisfaction level of consumers.

2. Price of Related Goods :

Demand for the given commodity is also affected by change in prices of the related goods. Related goods are of two types:

(i) Substitute Goods.

(ii) Complementary Goods.