market demand
- Created by: Hetal M
- Created on: 08-05-17 15:45
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- market demand
- demand
- amount that customers are willing and able to buy at any time at any price
- causes of change in demand
- price
- normal goods - fall in price = higher demand
- income
- increased income = increased demand
- increased demand for luxury goods = decreased demand for inferior goods
- fashion, taste and preference
- fluctuations in trends happen often
- advertising and branding
- effective advertising = increased demand
- external shocks
- sudden change can affect it
- e.g. loss of customers
- seasonal/festive factors
- certain products have high sales in peak season
- e.g. slippers in summer or chocolates in easter
- price
- change in price has an effect on income
- fall in price = increased spending power
- customers can buy more within a budget
- income increases = demand increases
- change in price has an effect of substitution products
- fall in price of X goods = cheaper compared to substitutes
- some switch to X goods = higher demand
- depends on how close the substittutes are
- demand curve
- amounts demanded of a product in the market at different price points
- demand
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