Price factors of demand changes are taken into account when conducting economic calculations. The amount of demand demonstrates how many positions of a product one buyer telegram dating philippines can buy, it is determined by the cost of the goods.
Types of demand factors
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This is a theoretical and ideal scenario. In practice, everything can be completely different, since the amount of demand is also affected by other external conditions. For example, fashion or the snob effect. Therefore, when measuring the amount of demand, it is necessary to take into account not only the price of the final product or service. Circumstances that also influence the buyer at the time of making a purchase decision are called demand factors.
Price factors
The first thing a buyer pays attention to is the stated price of a product or service.
The price of the product itself
Price factors of demand change work as follows: an increase in cost leads to a decrease in demand, and vice versa. How do price factors of demand function using an example? If fuel prices rise, the cost of cereals and bread also jumps sharply. The need for them remains the same. While with an increase in the cost of branded items and other luxury goods, the demand for them among the wealthy will grow, since they show the social status of the individual.
Price of interchangeable goods
There are always many analogues of similar products and services on the market, which ensures a high level of competition. If alternative options are more expensive than your product, it will be popular with potential buyers and vice versa. For example, if gasoline rises in price, the demand for gas and electricity increases.
Prices of complementary products
Price factors that influence the amount of demand also include prices for complementary goods. For example, if the price of photographic film rises, then the demand for cameras with film falls.