1.2.1 demand
- Created by: Praneethdsilva
- Created on: 14-02-19 12:18
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- Demand ( 1.2.1)
- Changes in consumer incomes
- As income increases , so does demand for a certain product .
- Demand may not increase or decrease if it is a necessity good .The reason is people need them goods and if the product is good they will not be that bothered by the price .
- Demand may decrease as they might go to different supplier as their income had increased
- Changes in prices' of substitutes and complementry goods
- As the price of substitutes increase , so does the demand for the product .
- As the price of complementary goods increases, the demand for a product decreases .
- Seasonality
- Seasonal business is a term that refers to the fluctuations in business that correspond to changes in season.
- Some goods have seasonal demand
- External shocks
- An unexpected change in an economic variable which takes place outside the economy.
- Factors beyond the control of the business ( competition , Government , economic climate , social and environmental factors)
- Fashions , tastes and preferences
- If fashion trends and tastes change so will demand . Demand will increase or decrease .
- Advertising and branding
- With more advertising demand will increase as the company brand and name is getting more acknowledgement . so more people will want to buy the products .
- Demographics
- A statistical view of a population, generally including age, gender, income, schooling, occupation
- As the distributions of the population changes , so does the demand for certain products.
- Changes in consumer incomes
- Demographics
- A statistical view of a population, generally including age, gender, income, schooling, occupation
- As the distributions of the population changes , so does the demand for certain products.
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