Demand

Definition: willingness / desire / buyer’s or consumer’s affordability to buy a quantity of product on a certain price level at specific term.

- it supported by money or buying power

- effective demand = desire

- inverse relationship (-ve) is due to two key factors:

         1. substitute goods factor

        2. True income factor

            Determinant of demand / factors influenced demand

            i. price of own goods

            - most important factors that influence demand of a product

            - ex, chicken

            ii. price of other goods

            - depends on relationship of one goods ith another

            - 3 types of goods to consider

                    a) substitute goods

                    b) complementary goods

                    c) unrelated goods

3. consumer of buyer desire

4. consumer income

5. future price expectation

6. size and structure of population

7. government policy

8. income distribution

9. season