Theme 1 - Demand

Question 1

What is demand

Answer 1

Demand is how much consumers are willing and able to pay for your product or service in a certain time period

Question 2

Factors affecting demand

Answer 2

Factors affecting demand include:

1. Price: As the price of a good or service increases, demand usually decreases, and vice versa.
2. Income: Higher income levels can increase demand for goods and services.
3. Consumer Preferences: Changes in tastes and preferences can shift demand.
4. Substitutes and Complements: The availability and price of substitute goods can affect demand, as can complementary goods.
5. Expectations: If consumers expect prices to rise in the future, they may buy more now, increasing current demand.