factor affecting demand

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.