explain the factors affecting demand in detail.
Answers
The demand for a good depends on several factors, such as price of the good, perceived quality, advertising, income, confidence of consumers and changes in taste and fashion.
1. Change in price :
A change in price causes a movement along the Demand Curve.
2.Shifts in the demand curve :
This occurs when, even at the same price, consumers are willing to buy a higher (or lower) quantity of goods. This will occur if there is a shift in the conditions of demand.
3.Fall in demand :
A fall in demand could occur due to lower disposable income or decline in the popularity of the good.
OTHER TYPES OF DEMANDS:
Effective demand:
This occurs when a consumers desire to buy a good can be backed up by his ability to afford it.
Derived demand:
This occurs when a good or factor of production such as labour is demanded for another reason.
Composite demand :
A good which is demanded for multiple different uses
Joint demand :
goods bought together e.g. printer and printer ink.
Hope it helps :)