Write the factors of effecting demand. …

1.Taste and preference-Taste also affect the demand of a commodity. *When there is favourable change in the taste and preference of the consumer then demand for such a commodity will rise .On the other hand when there is unfavourable change in the taste and preference of the consumer then demand of a commodity will fall. 2.Own price of a commodity -own price of the commodity affect demand of a commodity in two ways. *A.Contraction in D- When on price of a commodity rise and it's demand fall is called CID. *B.Extension in D-when own price of a commodity fall and its demand rises is called extension in demand. 3.Expectation -when the price of a commodity is expected to increase in near future then demand for such a commodity will increase and Vice-versa. 4.Income Income of the buyer-income of the buyer affect the demand of two goods: A .Normal goods -those goods whose demand increase with increase in income. Positive relationships b/w demand and income. B.Inferior goods.-Those goods whose demand increase with decrease in income. Negative relationship between demand and income.