1.

What is 'market' demand ? State four factors causing 'increase' in market demand.

Answer»

Solution :Market Demand refers to the quantity of a COMMODITY that all CONSUMERS are WILLING and able to buy, at each POSSIBLE price during a specific PERIOD of time.
The factors causing an increase in market demand are :-
(i) Increase in price of substitue goods.
(ii) Fall in price of complementary goods.
(iii) Increase in income of all the consumers.
(iv) A favourable change in Tastes and Prefernces of the consumers.


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