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DEMAND DETERMINANTS

8 五月, 2015 - 10:36

Price is the major determinant of the quantity demanded. The nonprice determinants of demand are:

  • number of buyers,
  • tastes,
  • income,
  • price of other goods (either complementary or substitute), and
  • expectations about future prices.

Advertising by companies shows that customers can be prompted to buy products for a great variety of reasons. The foremost inducement is still price.