ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What influences demand besides price? Factors like changes in consumer income also cause the market demand to increase or decrease. For example, if the number of buyers in a market decreases, there will be less quantity demanded at every price, which means demand has decreased.

Detailed explanation-2: -Changes in demand determinants will shift the Demand Curve. EXAMPLE: If Consumer Income increases (people have more money), then Demand will increase (people have more money and willing to spend more/buy more products).

Detailed explanation-3: -The 5 Determinants of Demand The price of the good or service. The income of buyers. The prices of related goods or services-either complementary and purchased along with a particular item, or substitutes bought instead of a product. The tastes or preferences of consumers will drive demand.

Detailed explanation-4: -Determinants of demand are factors that either positively or negatively affect demand in the market. The five determinants of demand are consumer taste, the number of buyers in the market, consumer income, the price of related goods, and consumer expectations.

Detailed explanation-5: -Price of product. The single-most impactful factor on a product’s demand is the price. Tastes and preferences. Consumer’s income. Availability of substitutes. Number of consumers in the market. Consumer’s expectations. Elasticity vs. inelasticity.