what factors influence the demand for a commodity? how does the law of demand take these factors into account?
Answers
Explanation:
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. We can look at either an individual demand curve or the tot
Answer:
Factors affecting market demand are as follows:
(1) Price of the Product: As price rises, the demand falls and vice-versa.
(2) Consumer's Taste and Preference: As tastes and preferences shift from one commodity to the other, demand for the first commodity reduces and that of the other commodity rises.
Explanation:
The quantity demanded of a commodity by a consumer depends mainly on price of the commodity itself, prices of other related goods, income of consumer and tastes and preferences of the consumer.