Question

Is the economic demand for a product determined solely by its usefulness?

Answer 1

Is the economic demand for a product determined solely by its usefulness?

The economic demand of a product depends on certain factors in an economy.

Demand mainly refers to the willingness and ability of a consumer to purchase, or consume a good or service. Therefore, it means literally, what the consumer demands from the market.

Economic demand indeed depends on the usefulness of the product, however it depends on other factors too, such as the following:-

1- The demand of a product depends on how many substitutes of that product are available in the market

2- It depends on the competitors of that product

3- It depends on the price of that good

4- It depends on the purchasing power of the consumer

5- It depends on the complementary goods of that product

5- Trend or fashion

6- Weather conditions, etc.