FACTORS AFFECTING DEMAND Let's discuss the factors that affect Demand
NUMBER OF CONSUMERS
The higher the number of consumer the greater the demand and vice versa. This is what the demand curve follows.
PRICE OF GOODS
As measured, price is the major factor that affects demand. The lower the price, higher would be the demand.
INCOME
The demand of consumer depends upon their income. The higher the income, higher would be the demand.
TASTE AND PREFERENCES
EXPECTATION OF CONSUMER
Taste and Preferences have direct impact on demand. As consumer only buy goods as per their taste and preference.
Demand is highly affected by the expectation of consumer that they have with future prices.
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