InterviewSolution
Saved Bookmarks
InterviewSolution
| 1. |
Discuss in brife the various factors of affecting in demand for a commodity? |
| Answer» Thank you<br>(i) Price of the commodity:\xa0When price of the commodity increases in the market, its quantity decreases and vice-versa.(ii) Income of the consumer:\xa0Market demand for a commodity is directly related to income of the consumer. Increase in income of consumer causes increase in market demand for the commodity.(iii) Prices of related goods:\xa0In case of substitute goods, demand for a commodity falls with fall in price of the substitute commodity. In case of complementary goods, market demand for the commodity rises with a fall in the price of complementary commodity.(iv) Tastes and Preferences:\xa0If consumer\'s tastes and preferences change, quantity demanded of the commodity will also change.(v) Income Distribution:\xa0If income distribution is even, market demand for the commodity will be more than otherwise.\xa0(vi) Size of Population:\xa0Higher population implies greater market demand for goods and services and vice-versa. | |