The following points highlight the two main features of the market demand. The features are: 1. Income Distribution 2. Population Distribution. Feature # 1. Income Distribution: Even if a country's national or per capita income remains constant, a change in the pattern of income distribution may lead to a change in the pattern of demand. There is likely to be [...]
The following points highlight the five determinants of demand. The determinants are: 1. The Price of the Commodity 2. The Prices of Related Goods (i.e., Substitutes and Complements) 3. The Income of the Buyer 4. Tastes and Preferences of the Buyer 5. Other Factors. Determinant # 1. The Price of the Commodity: The price of a commodity is the primary [...]
The demand function is a mathematical expression of the relationship between the quantity of goods or services that is demanded and changes in a number of economic factors, such as its own price, the prices of substitutes and complementary goods, income, credit terms the level of advertising, etc. The quantity demanded is the dependent variable the other factors and independent [...]