Question

explain the effect of population and 'distribution of income' upon market demand for a product.

Answer 1

Demographic transition explains a form of relationship between population and economic development. In the western countries it has been found that they have moved from a condition of high birth and death rates, to a condition of low birth and death rates which led to a slow rate of growth of population. This demographic change is known as 'Demographic Transition'. in other words, demographic transition describes the passage through which countries move from high birth and death rates to low ones. This has been the experience of countries going through a process of modernizing economic and social development.