Comprehinsive essay on The Factors of Demand
Demand is the relationship between the price that is charged and the amount that will be bought at that price. Demand is often thought to be a term used to describe what is popular. ... More often that not demand is a term that, in economics, encompasses an extremely large and often broad range of topics. These topics include the factors of demand, the demand curve, and the changes in demand. The factors of demand are the variables that determine what the demand for a specific good or service will be. ... For and item to be in great demand there must be a strong desire for it. ... The second factor that determines the demand of a good or service is the ability of the consumer to pay. Lets face it, if a person can’t afford to buy something then there is not much demand for that item. ... Well this person is not going to have much demand for a Lexus. ... Now that doesn’t mean that the demand for Lexus’ has gone away, but for that homeless person it has. The next factor of demand ties in somewhat with the first. ... The fourth factor of demand is relatively simple to grasp. ... Yes, price is defiantly a factor of demand.