DEMAND
Demand ability and the willingness of the consumers to consume a particular product or commodity.
Demand plays an important role and there exists an inverse relationship between demand and price. Thus if the prices increases , demand decreases and if price decreases ,demand goes up.
EXAMPLE:
If the price of the tomatoes increases then the demand will. Decrease because people will reduce there purchasing power.
Therefore , price and demand go hand in hand.when one increases the other decreases
DETERMINANTS OF DEMAND:
1)Tastes and preferences of the consumers.
2) number and price of substitute goods .
3)number and price of complementary goods.
4) distribution of income.
5)Information asymmetry.
6)eexpectations.
Demand ability and the willingness of the consumers to consume a particular product or commodity.
Demand plays an important role and there exists an inverse relationship between demand and price. Thus if the prices increases , demand decreases and if price decreases ,demand goes up.
EXAMPLE:
If the price of the tomatoes increases then the demand will. Decrease because people will reduce there purchasing power.
Therefore , price and demand go hand in hand.when one increases the other decreases
DETERMINANTS OF DEMAND:
1)Tastes and preferences of the consumers.
2) number and price of substitute goods .
3)number and price of complementary goods.
4) distribution of income.
5)Information asymmetry.
6)eexpectations.
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