What is Demand
Demand refers to the willingness and ability of consumers to buy a product at any given price over a time period
Demand is inversely proportional to price in a market. For instance, when the price of an item increases, consumers are less willing and able to purchase that item.
Change in consumers’ income: demand is affected by income levels. they are positively correlated for normal goods. ie when there is a rise in income, there is a rise in demand for a given product.
expectations of future prices: price expectations are positively related to demand. if price is expected to go up, the demand of a product rises and vice versa.
Seasonal factor: demand changes in different time period for different items. For instance, there is high demand for jackets in winter but low demand in summer.
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