What are the determinants of demand?
Understand the Problem
The question is asking about the factors that influence the quantity of a product demanded by consumers. This typically includes elements such as price, consumer preferences, income levels, and the prices of related goods.
Answer
Five key determinants of demand are price, income, prices of related goods and services, tastes and preferences, and expectations.
The five key determinants of demand are price, income, prices of related goods and services, tastes and preferences, and expectations.
Answer for screen readers
The five key determinants of demand are price, income, prices of related goods and services, tastes and preferences, and expectations.
More Information
Understanding these determinants helps businesses and economists predict how changes in the economy or society will affect consumer behavior. These factors can cause shifts in the demand curve, indicating changes in the quantity demanded at each price point.
Tips
A common mistake is assuming that price is the only factor affecting demand. It's important to consider all determinants, as ignoring others can lead to inaccurate demand forecasts.
Sources
- Determinants of Demand - Study.com - study.com
- The 5 Determinants of Demand Explained - Outlier Articles - articles.outlier.org
- Demand and the determinants of demand (article) - Khan Academy - khanacademy.org
