FACTORS AFFECTING THE

DEMAND OF A COMMODITY
DID YOU KNOW THAT….

PRICE is NOT the ONLY

factor affectingthe demand
of a commodity?
INCOME

The willingness of the consumer to

buy a commodity depends on his/her
CAPACITY to purchase the item.
Higher income motivates him/her to
spend more. With lower income,
he/she spends less.
PRICES OF OTHER COMMODITIES

There would be potential

substitutes of a given product
that will provide better prices
and benefits than what the
consumer has in mind
EXPECTATION

What will be happening to the

composition or the pricing of the
product also affects its demand
(ex. Buying US dollars, filling up
gasoline and buying LPG)
TASTES

Can be influenced by many

factors such as culture, peer
pressure, changing trends
and advertising influences
MARKET

Increasing population and or target

markets can influence demand for a
commodity ( example: a growing
young population may necessitate
more production of items that will
appeal to their age group)
EXERCISE:

In the first year of the COVID 19 pandemic, some face mask
distributors took advantage of the state mandate for people to
wear face masks when outside to increase production of the
items. Prices are initially in the high end at first. Towards the end
of the second year of the pandemic, prices of face masks in
general began to go down due to numerous supply. What is/are
the main factor(s) affecting the demand of the face masks by that
time compared to the first year that caused the fall in its prices?