The role of tastes and preferences of consumers in the process of determining the demand for goods. Changes in the prices of related products, the use of advertising in stimulating the sale of products. Consumers " expectations concerning future prices.
Important factors that influence the demand of goods 1. Tastes and Preferences of the Consumers An important factor which determines the demand for a good is the tastes and preferences of the consumers for it. The changes in demand for various goods occur due to the changes in fashion and also due to the pressure of advertisements by the manufacturers and sellers of different products. On the contrary, when certain goods go out of fashion or people’s tastes and preferences no longer remain favourable to them, the demand for them decreases. 2. Income of the People The demand for goods also depends upon the incomes of the people. The greater income means the greater purchasing power. Therefore, when incomes of the people increase, they can afford to buy more. When the incomes of the people fall, they would demand less of a good 3. Changes in Prices of the Related Goods The demand for a good is also affected by the prices of other goods, especially those which are related to it as substitutes or complements. The
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