Question

What is demand function? Explain the determinants of market demand function

Answer 1

Answer:

Demand function is what describes a relationship between one variable and its determinants. It describes how much quantity of goods is purchased at alternative prices of good and related goods, alternative income levels, and alternative values of other variables affecting demand.

The Five Determinants of Demand

• The price of the good or service.

• The price of the good or service.The income of buyers.

• The price of the good or service.The income of buyers.The prices of related goods or services—either complementary and purchased along with a particular item, or substitutes and bought instead of a product.

• The tastes or preferences of consumers will drive demand.

• Consumer expectations.