Transcript Demand and its Determinants

DEMAND AND ITS
DETERMINANTS
Sudhit Sethi
Demand
Demand refers to that particular quantity
of commodity that a consumer is willing
to and able to purchase at a particular
price.
A careful analysis of determinants of
demand is very useful to a Firm
because it enables the Firm to forecast
its sales and adjust the production
accordingly.
Main determinants of Demand are as
follows:
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Price of Commodity
Price of Related Goods
Income of Consumer
Tastes & Preferences of
Consumer
Change in Population
Climatic Conditions
Conclusion
All the determinants of Demand are
very important. A Business Firm should
have knowledge and information about
all these factors in order to finalize its
own production and marketing
strategies. Firm should not ignore any
of the factors determining Demand as it
may lead to incorrect forecast of Sales.
References
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Business Economics - M.M Gupta
Macroeconomic Policy Environment –
Shyamal Roy
Macroeconomics – Dornbusch & Fischer