1.2.1 Demand

Question 1

Define Demand

Answer 1

Demand is the amount of a good that consumers are willing and able to buy at a given price.

Question 2

How does price effect levels of demand?

Answer 2

As the price increases on a product or service, normally, the demand will decrease as less customers are willing (or able) to pay the price.

Question 3

What are the 10 non-price factors that effect demand?

Answer 3

1. )Price of substitutes
2. )Alternative brands
3. )Price of compliments
4. )Changes in consumer income
5. )Trends in fashion and tastes
6. )Marketing, advertising and branding
7. )Population structure / demographics
8. )Time of year
9. )Weather and climate
10. )External shocks

Question 4

What two factors determine demand?

Answer 4

• Price

- Non-price