Question

What is the incentive motive in demand?

Answer 1

Hey friend,

Incentives are very important in order to increase demand. Economically when the price of a product increases, its demand decreases because the buying power of people decreases and vice versa. Incentives are important to cater to such issues. Incentives push people in order to buy the products and increase their sales. People see that incentive as their own benefit and falls prey.

I hope the answer helped you.

Thanks

Answer 2

In regard to demand, there is the most common incentive of price which leads to either a rise in demand curve or a fall in the demand curve.

The case with demand is that when the price of a certain good or service rises, (keeping all other things constant), the demand for that good or service falls.

SO the incentive is that when the price falls, then the incentive of monetary benefit rises, thus demand too rises.