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27 June, 12:28

What are the determinants of demand?

Income

Price of related goods

A good's own price

Technology

Tastes and preferences

Resource prices

Number of consumers

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  1. 27 June, 12:36
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    Income

    Price of related goods

    A good's own price

    Tastes and preferences

    Number of consumers

    Explanation:

    A good's own price: the law of demand states that when prices rise, the demand falls. That also means that when prices drop, demand will grow.

    Income: when income rises, so will the quantity demanded. When income falls, so will demand.

    Prices of related goods: these are either complementary, those purchased along with a particular good or substitutes. They can also influence the demand.

    Tastes and preferences: when the consumer's tastes or preferences change in favor of a product, so does the quantity demanded.

    Number of consumers: it has a major effect on the demand. As the number increases, the demand rises.
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