Market, Demand (03)

What is market?

A market is situated where sellers and buyers meet in order to exchange the goods and services.

Demand

Demand is the desire to buy a product which is backed up by purchasing power.


Factors affect Demand




1. Price of the product

Price and Demand have negative relationships which price increase the demand decrease.
On the other hand when demand increase price tends to increase and when demand increases the price will go down.

2. Price of substitutes

Substitutes is a product which can be used instead of another product.
When the substitute price increase the demand for the product will increase and vice versa.

3. Price of complementary goods

Complementary is a product which has to be simultaneously use in order to use it.Price of complimentary increases
demand for product will decrease and vice versa.

4. Fashion based and references

Consumer Income,weather conditions,Government...