market demand

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  • 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
    • 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

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