Determinants or Factors affecting demand

1. DEMAND
Dr. NGPASC
COIMBATORE | INDIA
Dr. N.G.P. ARTS AND SCIENCE COLLEGE
(An Autonomous Institution, Affiliated to Bharathiar University, Coimbatore)
Approved by Government of Tamil Nadu and Accredited by NAAC with 'A' Grade (2nd Cycle)
Dr. N.G.P.- Kalapatti Road, Coimbatore-641048, Tamil Nadu, India
Web: www.drngpasc.ac.in | Email: info@drngpasc.ac.in | Phone: +91-422-2369100
RAJAKRISHNAN M
Assistant Professor in Commerce CA

2. Dr. NGPASC
COIMBATORE | INDIA
Determinants / Factors affecting Demand
Price of a commodity:
Inverse change
Ceteris Paribus
With other conditions remaining the same;
Other things being equal
Price of related goods:
Price of substitute goods / Complementary
goods
Substitute – replace – tea – coffee
Complimentary – Jointly demanded – Petrol - car
Income of the consumer:
Y D Y D

3. Dr. NGPASC
COIMBATORE | INDIA
Determinants / Factors affecting Demand
Distribution of Wealth:
Equal distribution
Society
DD higher
Inequality
DD will be less
Tastes and Preferences:
Consumer
Fashion
Habits
Customs
Advertisement
Climate
New inventions

4. Dr. NGPASC
COIMBATORE | INDIA
Determinants / Factors affecting Demand
Govt Policy:
Taxes
Prices
DD
State of Business:
Business conditions
Country
Boom
DD
Depression demand lower
Population Growth:
Population
Demand

5. 5