demand

Question 1

define demand

Answer 1

is the quantity
consumers are willing and able to buy at a given price

Question 2

factors affecting demand

Answer 2

• Changes in the price of substitutes
• Change in price of complementary products
• Changes in consumer incomes
• Fashion, tastes and preferences
• Seasonality
• External shocks
• Demographics
• advertising and branding

Question 3

what is the basic law of demand?

Answer 3

is that demand varies inversely with the price

e.g. lower prices make products more affordable for consumers