Final answer:
The determinants of demand are the factors that influence the demand for a product or service. These factors include tastes and preferences, income, prices of related goods, and population.
Step-by-step explanation:
The determinants of demand are the factors that influence the demand for a product or service. These factors include:
- Tastes and Preferences: The desire of consumers to purchase a product or service based on their preferences and liking for it.
- Income: The ability of consumers to purchase a product or service is influenced by their income. Higher income individuals may be able to afford more expensive products or services.
- Prices of Related Goods: The prices of substitute goods or complementary goods can affect the demand for a product or service. For example, if the price of a substitute good increases, it may increase the demand for the original product.
- Population: The size or composition of the population can influence demand. For instance, larger families might have a greater demand for certain products like clothing or food.