Factors that determine demand

Question 1

Name and explain the factors that determine the demand

Answer 1

1. Price of product - if price of product falls, the higher the demand for product will be
2. Price of related product - Products that complement each other are seen as related. if price of 1 increases, the price of the other will also increase
3. Income of consumer - Person with high income can purchase more than a person with low income
4. Taste of consumer - Everyone has different tastes so 1 person’s demands will not be the same as the other person’s
5. Size of household - bigger the family the less luxury items may be purchased