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What are the determinants of demand?

Income
Price of related goods
A good's own price
Technology
Tastes and preferences
Resource prices
Number of consumers

1 Answer

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Answer:

Income

Price of related goods

A good's own price

Tastes and preferences

Number of consumers

Step-by-step explanation:

A good’s own price: the law of demand states that when prices rise, the demand falls. That also means that when prices drop, demand will grow.

Income: when income rises, so will the quantity demanded. When income falls, so will demand.

Prices of related goods: these are either complementary, those purchased along with a particular good or substitutes. They can also influence the demand.

Tastes and preferences: when the consumer’s tastes or preferences change in favor of a product, so does the quantity demanded.

Number of consumers: it has a major effect on the demand. As the number increases, the demand rises.

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