Question

What are the determinants of demand?

Answer 1

Answer:

The determinants of demand are:

Income

Price of related goods

A good's own price

Tastes and preferences

Number of consumers

Explanation:

The following are the determinants of demand:

1. Income - Income is a very important determinant of determine. Other things remaining equal, am increase in income will lead to an increase in demand.

2. Price of related goods - price lf related goods like substitute goods or complementary goods affect the demand of a product

3. A good's own price - This is very important too. The higher the price, the lower the quantity demanded and vice-versa

4. Tastes and preferences - Consumers might change taste and preference any time. Demand shifts to the right if customers like a product.

5. Number of consumers - Number of consumers affect demand. Goods are consumed more where the population is higher.