Non-price determinants affecting Demand

Non-price related Factors affecting Demand

by Carl Javison

​We Aim To:

• ​Review the Non-price factors affecting the demand.​

• ​ ANSWER the Summative Test #2.

Multiple Choice

It is a distinct group of individuals with shared citizenship, identity, or characteristic. If the number of this factor INCREASES, the demand also increases.

• Expectation

• Income

• Population

• Preference

Multiple Choice

It is the consumers behavior which refers to a certain characteristics of his/her wants to have in a good or service best for him/her.

This could be the level of happiness, degree of satisfaction, and utility from the product.

• Expectation

• Income

• Population

• Preference

Multiple Choice

This refers to the buying capability obtained of an individual in exchange for the service provided or from from selling  goods and services. 

• Expectation

• Income

• Occasion

• Price of Related Products

Multiple Choice

When the price of commodity increases, demand for it will decrease. Depending on the Classification of Goods if its substitute or complementary.

• Price of Related Products

• Population

• Preference

• Occasion

Multiple Choice

This refers to people’s current projection and assumption to the economy, which influences its future state.

• Population

• Income

• Expectation

• Occasion

Multiple Choice

An increase in the demand for a certain product or service under a special circumstances or celebrations.

• Preference

• Occasions

• Population

• Income

​PRICE OF RELATED PRODUCTS

​

Multiple Choice

These are goods that can be used in place of another. It provides alternatives and competition in the Market.

• Complementary goods

• Inferior goods

• Normal Goods

• Substitute goods

Multiple Choice

These are goods or products which are used together or consumed simultaneously, that adds value to it.

• Complementary goods

• Inferior goods

• Normal Goods

• Substitute goods

INCOME​

​

​NORMAL GOODS

• These are goods that increases its demand due to a rise in consumers' income.

• If there's an increase in wages, demand for normal goods increases while conversely, wage declines or layoffs lead to a reduction in demand.

• Quality and Standard

​INFERIOR GOODS

• These are good whose DEMAND drops when people's incomes rise.

• Often times fall out of favor as incomes and the economy improve, as consumers begin buying normal goods instead.