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    Determinants of Demand

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    Aditya Dwivedi
    This document outlines the key determinants of individual and market demand. For individual demand, the main factors are price, income, tastes/preferences, prices of related goods, advertising, and expectations. Market demand is also influenced by price as well as population growth, weather, taxes, credit availability, savings patterns, and money supply. The demand function mathematically represents the relationship between demand and its determinants like price, income, and related prices. Finally, the law of demand states that demand and price are inversely related - as price increases, demand decreases - assuming other factors remain constant.

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    Determinants of Demand

    Uploaded by

    Aditya Dwivedi
    834 views2 pages
    This document outlines the key determinants of individual and market demand. For individual demand, the main factors are price, income, tastes/preferences, prices of related goods, advertising, and expectations. Market demand is also influenced by price as well as population growth, weather, taxes, credit availability, savings patterns, and money supply. The demand function mathematically represents the relationship between demand and its determinants like price, income, and related prices. Finally, the law of demand states that demand and price are inversely related - as price increases, demand decreases - assuming other factors remain constant.

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    This document outlines the key determinants of individual and market demand. For individual demand, the main factors are price, income, tastes/preferences, prices of related goods, advertising, and expectations. Market demand is also influenced by price as well as population growth, weather, taxes, credit availability, savings patterns, and money supply. The demand function mathematically represents the relationship between demand and its determinants like price, income, and related prices. Finally, the law of demand states that demand and price are inversely related - as price increases, demand decreases - assuming other factors remain constant.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    834 views2 pages

    Determinants of Demand

    Uploaded by

    Aditya Dwivedi
    This document outlines the key determinants of individual and market demand. For individual demand, the main factors are price, income, tastes/preferences, prices of related goods, advertising, and expectations. Market demand is also influenced by price as well as population growth, weather, taxes, credit availability, savings patterns, and money supply. The demand function mathematically represents the relationship between demand and its determinants like price, income, and related prices. Finally, the law of demand states that demand and price are inversely related - as price increases, demand decreases - assuming other factors remain constant.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Determinants of Demand

    The main demand determinants of individual demand that are:-

    1. Price of the Product


    2. Income of the Consumer
    3. Taste and Preferences
    4. Price of related Good and Service
    5. Advertisement, Promotion and Sales
    6. Consumer Expectation

    Determinants of Market Demand


    1. Price of the Product
    2. Growth of Population
    3. Weather Condition
    4. Tax Rate
    5. Availability of Credit
    6. Pattern Of Saving
    7. Circulation Of Money

    Demand Function
    The demand function is an algebraic function of the relationship between
    demand of the commodity and its various determinants that affect his quantity.

    qD = f (price, income, prices of related goods, tastes, expectations)

    Law of Demand
    The law of demand states that other factors being constant, price and quantity
    demand of any good and service are inversely related to each other. When
    the price of a product increases, the demand for the same product will fall.
    Assumptions of Law of Demands
    1. No change in habits, customs and income of consumers.
    2. Taste of the buyer should not change.
    3. Price of other goods should remain constant.
    4. No new substitute for the commodity available.
    5. Price rise in future should not be expected.

    Himanshu Singh
    B.B.A LL.B

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