1.2.1 Demand

Question 1

definition of demand

Answer 1

quantity that customers are willing and able to buy at a given price in a given period of time.

Question 2

how can demand be affected by changes in price of substitutes

Answer 2

if a substitutes cost increased by a huge amount, then demand for a particular brand would rise.

Question 3

how can demand be affected by changes in consumer incomes

Answer 3

a higher income can lead to increase demand for expensive products

Question 4

how can demand be affected by fashion, preferences and taste

Answer 4

demand for product relies on what the consumer wants.

Question 5

how can demand be affected by advertising and branding

Answer 5

encourages consumers to be loyal and repeatedly purchase the product . stops demand from falling

Question 6

how can demand be affected by demographics

Answer 6

changes in population can lead to changes in demand.

Question 7

how can demand be affected by external shocks

Answer 7

threat of war, extreme weather, diseases. eg. COVID 19 high demand for toilet paper

Question 8

how can demand be affected by seasonality

Answer 8

demand can change throughout the year. eg. sunglasses