Question

estion Completion Status: QUESTION 9 List the factors of demand and explain any three. TTTArial3 Path: p

Answer 1

The factors of demand are as follows.

1. Price of the product, 2. Price of related goods. 3. Income of the consumer, 4. Tastes & Preferences, 5. Expectation of change in the price in Future.

1. Price of the product - There is a reverse relationship between the price and demand of any product. If prices rise then the demand will fall and vice versa.

2. Income of the consumer - If the income rises of any consumer then his demand will shift from normal product to luxurious product.

3. Tastes & Preferences - Demand of any product also change with the current fashion or preferences of the group of consumer. If their taste or preference change then the demand of that product will also change.