law of demand

demand

is the desire or want for something

demand

the amount the buyers are willing to purchase at a given price and over a given period of time

demand

is the desire to own anything, the ability to pay for it, and the willingness to pay.

quantity demand

is the amount of a product people are willing to buy at a certain price

price

is the amount of money that has to be paid to acquire a given product.

downward sloping

The demand curve is usually \_______, since consumers will want to buy more as price decreases

law of demand

It has an inverse relationship of the Price and its Quantity Demand.

law of demand

it states that When Price increases, Quantity demand decreases and vice versa

income

A buyer's income determines his/her purchasing capacity

tastes, habits, and preferences

Demand for many goods depend on the person's tastes, habits and preferences. Demand for several products like ice-cream, chocolates, beverages and so on depends on individual's tastes

relative prices of other goods

How much the consumer would like to buy of a given commodity, however, also depends on the relative prices of other related goods such as substitute or complementary goods to a commodity

substitute products

percentage increase in the quantity demanded for product A results in a percentage decrease in the quantity demanded for product B

complementary products

products whose demand curves are positively related, such that they rise or fall together; a percentage increase in demand for one result in a percentage increase in demand for the other

consumer's expectations

When he expects its prices to fall in future, he will tend to buy less at the present prevailing low price

Consumers expectations

if he expects its price to rise in the future, he will tend to buy more at present

Advertising Expense

In modern times, the preferences of a consumer can be altered by advertisement and sales propaganda, albeit to a certain extent only

demand function

a mathematical function describing the relationship between a variable, like the demand of quantity, and various factors determining the demand.

demand function

the purpose of this function is to analyze the behavior of consumers in a market and to help firms make pricing decisions