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Define demand. state the factors affecting demand for a commodity by a consumer

Answer» Demand refers to a quantity of a commodity that a consumer is willing or able to buy at each possible price during a given period of time. Factors affecting demand are : 1. Price of the given commodity . 2. Price of related goods. 3Income of the consumer. 4. Taste and preferences. 5. Exceptance of rise in price in future<br>Brainly.inWhat is your question?1Secondary School Economy 13 pointsDefine demand.Explain any four factors that affect demand for a commodityAsk for details Follow Report by Adasrh3904 31.07.2019AnswersMe · BeginnerKnow the answer? Add it here! lakshana384lakshana384 AceDemand is the number of goods that the customers are ready and able to buy at several prices during a given time frame.The various factors affecting demand for a Commodity :1. Price of the Given Commodity :It is the most important factor affecting demand for the given commodity. Generally, there exists an inverse relationship between price and quantity demanded. It means, as price increases, quantity demanded falls due to decrease in the satisfaction level of consumers.2. Price of Related Goods :Demand for the given commodity is also affected by change in prices of the related goods. Related goods are of two types:(i) Substitute Goods.(ii) Complementary Goods.3. Income of the Consumer :Demand for a commodity is also affected by income of the consumer. However, the effect of change in income on demand depends on the nature of the commodity under consideration.4. Tastes and Preferences :Tastes and preferences of the consumer directly influence the demand for a commodity. They include changes in fashion, customs, habits, etc. If a commodity is in fashion or is preferred by the consumers, then demand for such a commodity rises. On the other hand, demand for a commodity falls, if the consumers have no taste for that commodity.5. Expectation of Change in the Price in Future :If the price of a certain commodity is expected to increase in near future, then people will buy more of that commodity than what they normally buy. There exists a direct relationship between expectation of change in the prices in future and change in demand in the current period. For example, if the price of petrol is expected to rise in future, its present demand will increase.


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