what are the factors affecting demand?

Question

can you give some examples of goods and services affected by demand? what is the definition of demand?

Answer 1

Change in the price of a substitute - If the price of a substitute good goes down, demand for the original good lessens at every price level. (for example, coffee price goes down, people drink less tea). -- demand curve shifts to the left)

Change in the price of a compliment - if the price of a compliment goes down, demand for the original good increases at every price level (for example, if price of cream goes down, people drink more coffee).- - demand curve shifts to the right)

Taste - consumer preferences will change and this affects demands (example - hula hoops less popular than in the 1960's
demand lessens). - - demand curve shifts to the right)

Income - increase in income increases demand for normal goods (decreases demand for inferior goods) - - demand curve shifts to the right)

Population - increase in population will increase demand for a good. (demand curve shifts to the right)

Please note these are some factors which change demand. They shift the demand curve left or right. Change in Quantity Demanded happens along the original demand curve and is in relation to the change in price of the item. (caused by shift in Supply curve).

I'm unsure of what you mean by goods and services affected by demand. Hopefully, the examples given above are what you're looking for.

As to definition of demand, the one posted by the first answerer looks good to me.

Peace

Answer 2

Factors Affecting Change In Demand

Answer 3

The main factor is The Supply!

"In microeconomic theory the partial equilbrium supply and demand economic model originally developed by Alfred Marshall attempts to describe, explain, and predict the price and quantity of goods sold in competitive markets. It is one of the most fundamental models, widely used as a basic building block in a wide range of more detailed economic models and theories. The theory of supply and demand is important in the functioning of a market economy in that it explains the mechanism by which many resource allocation decisions are made. However, unlike general equilibrium models, supply schedules in this partial equilbrium model are fixed, as the long run reciprocal relationship between demand and supply is ignored.

In general, the theory claims that where goods are traded in a market at a price where consumers demand more goods than firms are prepared to supply, this shortage will tend to increase the price of the goods. Those consumers that are prepared to pay more will bid up the market price. Conversely prices will tend to fall when the quantity supplied exceeds the quantity demanded. This price/quantity adjustment mechanism causes the market to approach an equilibrium point, a point at which there is no longer any impetus to change. This theoretical point of stability is defined as the point where producers are prepared to sell exactly the same quantity of goods as the consumers want to buy.

Demand is economic want backed up by purchasing power. i.e., it is the plan, or relationship, expressing different amounts of a product buyers are willing and able to buy at possible prices, assuming all other non-price factors remain the same. For example, a consumer may be willing to purchase 2 lb of potatoes if the price is $0.75 per lb. However, the same consumer may be willing to purchase only 1 lb if the price is $1.00 per lb. A demand schedule shows the quantity demanded at any given price. It can be represented on a graph as a line or curve by plotting the quantity demanded at each price. It can also be described mathematically by a demand equation. The main determinants of the quantity one is willing to purchase will typically be the price of the good, one's level of income, personal tastes, the price of substitute goods, and the price of complementary goods.

The shape of the aggregated demand curve can be convex or concave, possibly depending on income distribution.

The capacity to buy is sometimes used to characterise demand as being merely an alternate form of supply."

Answer 4

call for could be stricken by making use of how many human beings stay, artwork or return and forth by making use of each and on a daily basis. The call for for a undeniable shop could be stricken by making use of the product alternatives of interior of reach opposition.