1.2.1 demand

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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.
  • 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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