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Q1) list and elaborate on the factors that will be affecting the demand for the following products in the next several years. do you think these factors will ca - Essay Example
Ans.) There are various factors which affect the demand for a product. The main factor which affects the demand for a product is its 'Price'. The Law of Demand states that : As price of a good increases, its quantity demanded decreases and vice versa. However, any change in the price of a commodity will not shifts its demand curve, any price changes will result in an extraction or contraction of demand i.e…
movement along the same curve towards a higher level of quantity demanded. Any other factors other than price which affects the demand for a product will result into a change in its demand at every level; hence the whole demand curve will shift from its original position and will operate on a new demand curve formed on the basis and magnitude of the change. Some factors which affect the demand for a product are changes in the income level of a person, changes in the distribution of income, advertising and marketing of the product, consumer's taste, fashion or trend, credit facilities associated with the product, price of substitute goods and complementary goods etc. Any changes is population are also considered to be a factor which influence the demand, however, it is considered to be a long-term factor, any changes in population usually occur over a large period of time.
The market for convenience foods is expanding rapidly even though there are various programs and efforts directed to inform the people about its adverse effects on human health. Some people believe that it contains lesser amount of nutrients and higher amount of fats, preservatives, taste enhancers etc. ...