12 Factors Which Influence Demand for a Commodity (Useful Notes)
There are several factors which influence the quantity demanded of a commodity. Important among them are the price of the commodity, the price of related commodities, and income of the consumer, taste and preference of consumers, size of population and various other factors.It is essential to observe the separate effect of each variable on the quantity demanded. It helps to consider the effect of a change in all the variables on the quantity demanded at the same time.This enables economists to develop a theory of consumer’s demand. However, in law of demand we keep all other factors constant except price of the good in question. Below we will discuss in detail, the factors influencing demand. Image Source: images.flatworldknowledge.com (1) Price of Commodity: ADVERTISEMENTS: The price of commodity is the most…