Factors That Determine Demand

Question 1

Price

Answer 1

The higher the price,the lower the quantity demand

Question 2

Income

Answer 2

An increase in income leads to an increase in demand as the individual has more money to spend

Question 3

Wealth

Answer 3

Not the same as income weath is the combined value of savings/shares owned

Question 4

Advertising,promotional offers and public relations

Answer 4

Televison advertisements,offers and sponserships all effect demand

Question 5

Taste and fashion

Answer 5

Some products such as certain brands of clothes or technology are seen as in and some consumers regard these as an essential for their lifestyle

Question 6

Demographic changes

Answer 6

A larger population means more spending.businesses need to beaware of other demographic changes as well as these it also includes a change in the gender ratio any shift in age structure

Question 7

Goverment action

Answer 7

A campaign by the goverment for example to encourage a healthier lifestyle a keep fit champaign by the goverment will affect the demand fr both healthy and unhealthy demand for food