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Determinants of Demand

# Determinants of Demand

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Determinants of Demand:
The document explains the determinants of demand. And the determinants of the demand explained are , price, income, prices of related goods, tastes and expectations.

Determinants of Demand:
The document explains the determinants of demand. And the determinants of the demand explained are , price, income, prices of related goods, tastes and expectations.

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04/09/2014

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Microeconomics

LEARN TO EXCEL
omework elp
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Subject: Microeconomics
*
The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades.
Determinants of Demand

The concept of Determinants of Demand has coined from the Economics. The financial section of the world is the transient one. With the change of situation, it also changes its phase. Based on this, the curve of Demand changes its position in the Demand Graph. By seeing the curve lines in the graph, economists can determine the present demand background in the financial arena. Starting
from unlocking the demands of a country’s financial background to any particular firm’s demand,
everything can be revealed with this graph.
What is Demand?
Prior understanding the Determinants of Demand, we need to understand what the actual definition of the term Demand is. If we take up the concept of economics, then the term Demand means it as a mathematical expression. In this statistical expression a relationship between demand and supply of the products are drawn through graph. To increase or to reflect the change in the relationship, experts consult the graph lines of different periods. Demand is dependent on
various facts of the market. The fact of Good’s actual price to the income of the consumers,
everything is monitored in this particular segment.
Determinants of Demand
There are various reasons are available which are responsible for changing the curve in the Demand graph. Based on these features, Demand graph takes its position. Here are the basic features, which are responsible for this change
Price
The price of the Original good plays a key role in changing the Demand Graph. If the price will rise, the demand graph will reveal its effect on the finance market. The demand of the products to the customers will be revealed with the price hike in the graph. Again, the graph will reflect the relationship between the supply and demand of that product to the customers. The fluctuation of price will also be available with this graph.

Subject: Microeconomics
*
The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades.
Income
As the consumer is the key person for controlling the destiny of market, so it is quite an important part to consider the income of the consumer. If a large number of consumers enjoy a special hike in their income, then it will affect the market. Then they will spend more after the market and the demand chart will enjoy a hike. On the other hand, a low income or lack of job opportunity will make the market a tough place foe the dealers.
Prices of related goods
Every market has its own demands. Be it a commodity market or any other type of market, the price of the good plays an essential role. If the good is available in an affordable amount, then it can attract more customers. At the same time, the dealers can also make the most from these goods. On the other hand, an abnormal price tag of the related products of those goods will bring a downfall in the market.
Tastes
The taste of the dealer and consumers is an interesting thing. If it so seen that the choice of the dealer does not match the buyers, then it will be a hard task to revenue those products. Here the seller needs to understand the taste of his customers to get more profit. So starting from understanding the market to monitoring the preference of the customer, all are important to bring a successful feedback in the finance market.
Expectations
The term Expectation is a complicated one. Here different customers and sellers have different range of expectations that may not match with each other. Where some opt for getting more profit from a product, on the other hand, some wants to go with the trend, these different expectations among the buyers and sellers can fix the destiny of the market. This is also helpful for making the market into a transient one.