Factors Affecting Demand - SS1 Economics Lesson Note
There are several factors that affect demand, including:
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Price of the Good: The higher the price of the good or service, the lower the demand for it.
Income of the consumer: The higher the income of consumers, the higher the demand for most goods and services.
Price of substitutes: The availability and lower price of substitutes can decrease the demand for a particular good or service.
Consumer preferences: Consumer preferences and tastes heavily influence the demand for goods and services.
Demographics: Demographics, such as age, gender, and income, can significantly affect demand for certain goods and services.
Advertising and marketing strategies: Advertising and marketing strategies can increase consumer awareness and demand for a particular product or service.
Government policies: Government policies, such as taxes or subsidies, can impact the demand for certain goods and services.