factor affecting demand

1.	factor affecting demand
Answer» The factors which affects the demand of commodity are called Determinants of Demand. The factors are:-1. Price of Goods- There is inverse relationship between price and quantity demand of a commodity. If price of good rises, then its quantity demand decreases and if the price decreases then its quantity demand will increases.2. Money Income- If the Income of a consumer increases then its quantity purchase of good also increases. If the money income decreases then the demand also decreases.3. Taste and Preferences- When a consumer prefer good X the most then its demand would automatically increases. Similarly, if the preferences is very low then its demand also decreases.4. Population- The population of a commodity is directly related to the quantity demand of a commodity i.e. if population increases, the demand also increases.5. Time period- If the time period exist favourable for a commodity then its demand would automatically increases.6. Price related to Goods-There are two types of goods exist:-(A). Substitute goods- It is a type of good which can be change other types of related goods and the want of a consumer can be satisfied by altering or replacing its related goods.(B). Complementary goods- when two or more goods are together needed to satisfy the want of a consumer then they are known as complementary goods.

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