what are the factor affecting demand
Answers
Other things that change demandinclude tastes and preferences, the composition or size of the population, the prices of related goods, and even expectations. A change in any one of the underlying factors that determine what quantity people are willing to buy at a given price will cause a shift in demand.
1. NATURE OF COMMODITY : necessities like salt , kerosene, oil etc.have inelastic demand and luxuries have elastic demand.
2. AVAILABILITY OF SUBSTITUTE : demand for goods which have close substitute is relatively more elastic and goods without close substitute have less elastic demand.
3. DIFFERENT USES : commodities that can be put to different uses have elastic demand. for instance, electricity has different uses.
4. HABIT OF THE CONSUMER : good to which consumers become habitual will have inelastic demand