Saturday, July 28, 2018

Eight Factors Responsible for Variation in Demand!

Demand: Affordability and willingness of a customer to buy a product or service at a given price are called demand in economics.

Price: Price of a product is inversely proportional to the demand, as the price rises automatically demand the product decreases and price decreases automatically demand of the product increases.

Expectations of price hike: If there is any possibility of a price hike in the future, then present demand increases automatically.

Income: If the income of consumer increases demand also increase as people can consume the number of products or services they want.

Taste, habit and fashion: Consumer's taste, habit and fashion are the key parameters of demand for any goods.

Climate: Climate plays a vital role in demand for certain goods in specific areas.

Complementary goods: Demand of a commodity can be impacted by complimentary goods.

Advertisement: It always attracts people to buy any goods.

Government taxes: Taxes plays a vital role in price, and the price is the key factor of demand for any product.

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