NAME ZEESHAN ANAYAT

SEMESTER 5TH
ROLLNO 20
THERE ARE MANY DETERMINANTS / FACTORS
WHICH CAUSES OF RISE AND FALL IN DEMAND:
 DEMAND: INVERSLY PROPORTIONAL TO
PRICE.
 PRICE INCREASE DEMAND DECREASE.
 PRICE DECREASE DEMAND INCREASE.
 1. A CHANGE IN INCOME.
 When the income of a
consumer increases he purchase more of
superior goods and less of inferior goods.
 2. A CHANGE IN WEATHER.
 A Change in weather also
influence the demand. Eg demand for tea rises in the
winter season and falls during the summer season
irrespective of a change in its price.
 3. DISCOVERY OF SUBSTITUTE.
 when the
substitute of product is introduced in the
market its demand falls. Eg gas is a good
substitute of kerosene oil. There fore demand
for kerosene oil has fallen.
 4. A CHANGE IN PRICE :
 A
change in price of a product the demand for
product can rise or fall.
 5. A CHANGE IN POPULATION:
 When population
of a country increases, the demand for all
goods rises even through prices of the products
may or may not change.
 6. TASTE:
 With change in taste of peoples the demand
for a product can rise or fall. Eg If the people start
disliking sugar. Its demand will fall.
 THANKS
 ANY
QUESTION