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What 3 factors determine the demand for a product?

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What 3 factors determine the demand for a product?

The demand for a product will be influenced by several factors:

  • Price. Usually viewed as the most important factor that affects demand.
  • Income levels.
  • Consumer tastes and preferences.
  • Competition.
  • Fashions.

What are factors of demand?

The Five Determinants of Demand

  • The price of the good or service.
  • The income of buyers.
  • The prices of related goods or services—either complementary and purchased along with a particular item, or substitutes and bought instead of a product.
  • The tastes or preferences of consumers will drive demand.
  • Consumer expectations.

What are the reasons why people demand for money?

What is Demand for Money?

  • A transactions-related reason – People need money on a regular basis to pay bills and finance their discretionary consumption;
  • A precautionary reason, as an unexpected need, can often arise; and.
  • A speculative reason if they expect the value of such money to increase versus other asset classes.

What are the 6 factors that affect demand?

6 Important Factors That Influence the Demand of Goods

  • Tastes and Preferences of the Consumers: ADVERTISEMENTS:
  • Income of the People:
  • Changes in Prices of the Related Goods:
  • Advertisement Expenditure:
  • The Number of Consumers in the Market:
  • Consumers’ Expectations with Regard to Future Prices:

What are the 4 factors of demand?

Four factors that affect demand are price, buyers’ income level, consumer taste, and competition.

What are the 5 demand Determinants?

Five of the most common determinants of demand are the price of the goods or service, the income of the buyers, the price of related goods, the preference of the buyer, and the population of the buyers.

What are the 3 main motives for holding money?

According to Keynes, people hold money (M) in cash for three motives: the transactions, precautionary and speculative motives.

What are the 5 reasons for holding cash?

Motives for Holding Cash Balances in a Firm: 5 Motives

  • Transaction Motive: Cash balance is required to meet the day to day transactions of business.
  • Precautionary Motive: ADVERTISEMENTS:
  • Speculative Motive:
  • Future Requirements:
  • Compensating Balances: