The 5 Factors of Demand
The chief five factors of demand are as follows:
- The cost of goods and services.
- The buyers’ income.
- The costs of related commodities and services and include both complementary and that is bought with a specific item. This also includes substitutes or those products that are bought in place of another product.
- The preferences and tastes of consumers that drive demand.
- The expectations of the consumers. Most often, this is referred to whether consumers believe the costs of the product would escalate or diminish in the forthcoming days.
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