state two important determinants of demand
Answers
Explanation:
Some of the important determinants of demand are as follows
,1] Price of the Product. ...Browse more Topics under Theory Of Demand. ...
2] Income of the Consumers. ...
3] Prices of related goods or services. ...
4] Consumer Expectations. ...
5] Number of Buyers in the Market.
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Answer:
Explanation:
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.
1-Income of the Consumers
Rising incomes lead to a rise in the number of goods demanded by consumers. Similarly, a drop in income is accompanied by reduced consumption levels. This relationship between income and demand is not linear in nature. Marginal utility determines the proportion of change in the demand levels.
Number of Buyers in the Market
The number of buyers has a major effect on the total or net demand. As the number increases, the demand rises. Furthermore, this is true irrespective of changes in the price of commodities.