Demand (Part 2)

DETERMINANT OF DEMAND

PRICE OF RELATED GOODS Affected by a change in the price of related goods which have 2 categories.	SUBSTITUTE GOODS-Goods/services that can be used in place another product/service. COMPLEMENTARY GOODS-Goods that are used in conjunction with another product.
CONSUMER'S INCOME	-Income increase,consumer's demand for goods and services increases. -Goods increases in demand as income increases are normal goods - Goods decreases in demand as income increases as inferior goods
TASTE AND FASHIONS	- change significantly - if a product becomes fashionable, demand will increase and if the same product becomes outdated, demand will fall - tastes and fashions change demand will also changed
POPULATION	- demands depend on the size of the total population in the market
FESTIVE SEASONS & CLIMATIC CONDITION	Different product will be high demand
PRICE EXPECTED	If price are going rise for the next day, people are likely to buy more before the price are does go up