Hello, today I will be talking to you about the determinants of demand. The determinants of demand are the factors that change, other than prices, the demand curve shifts or changes its location. Now, there is five determinants of demand and I shall list them off here and now. They are: the price of the good or service, prices of any services or goods that happen to be related, the preference of the buyer, income of said buyer, and the expectations of the buyer.
The first one we will bring up is the buyers income. The more money that a buyer makes, the higher demand will be for an item or service. Now, please walk with me.
The preferences of a buyer can have a major impact on the demand because all buyers look towards a product or service that they will use or a just product that catches their eye. Some of these factors are their age and what their peers think is cool.
After preferences is the expectations of a buyer. If they were expecting lower prices, the demand of the product and/or service will drop. Although, with the vice versa, the buyer is actually expecting higher prices then the demand will rise to this.
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The number of buyers may be one of the biggest factors, since if there is less buyers, there is less demand. If there is more buyers, then the demand rises.
The final factor is the price of related products and services. For example, if the price dropped on Clorox spray, then more Clorox spray would be bought then anything else. On the other hand of course, if Clorox sprays rose in price, less of it would be bought.