ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Price of related goods: an increase in the price of a substitute good will increase the demand for a good. A decrease in the price of a complementary good will also increase the demand for a good.

Detailed explanation-3: -Demand for complementary goods is called Joint Demand. Joint Demand is the demand in which goods are related in such way that an increase in the demand for one causes an increase in the demand for the other.

Detailed explanation-4: -When the price of complementary goods increases their supply also increases. Thus, this results in the increase in the supply of commodity also and vice-versa. Also, when the price of the substitutes increases their supply also increases. This results in a decrease in the supply of goods.

Detailed explanation-5: -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.