Question

Explain firm and industry demand in determinants of market

Answer 1

Answer:

In economics, there are several factors or determinants which affect the demand. Five of the most common determinants of demand are the price of the goods or service, the income of the buyers, the price of related goods, the preference of the buyer and the population of the buyers.

Each firm has a number of factories, farms or mines, as required. Each such firm in industry produces a homogeneous product. ... Note that with the demand remaining the same, if the price is higher or lower than OP, then the market is not in equilibrium.