ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Market factors affecting demand of consumer goods. The demand for a good increases or decreases depending on several factors. This includes the product’s price, perceived quality, advertising spend, consumer income, consumer confidence, and changes in taste and fashion.

Detailed explanation-2: -Market size can especially cause a demand curve to shift if the product or service in question is a “need” and not just a “want.” For example, a necessity such as soap may experience heightened demand during population increases simply because more people are buying the non-discretionary item.

Detailed explanation-3: -Essential elements of demand are quantity, ability, willingness, prices, and period of time. Own price is the most important determinant of demand. When the own price of a commodity falls, its demand rises and when its own price rises, its demand falls.

Detailed explanation-4: -Current population size will affect future market demand through prices and supply elasticity. Population changes are slow, and consumption changes are slow. The slowness of the process of change means there is time to adjust production and distribution in order to achieve stability in market supply.