In demand in a market economy is understood not just a desire to purchase a product or service. Demand arises when, in addition to desire, there is also the opportunity to pay for this product or service. Therefore, this is the desire of entrepreneurs and the ability of the buyer to purchase a product or service at a certain time at a certain price. Sometimes the need is formed by entrepreneurs themselves, using active sales by phone, as well as various sales techniques. Most of the goods have competing products substitutes. If the price falls on one product, then the demand for it increases due to the fact that consumers begin to buy less replacements, t. To. They become relatively more expensive. If the price of butter is reduced, it will be bought more, and margarine is less. Various goods can have different forms and slope of the demand curve. You can consider, for example, the current need for bread and pepsi. If the prices for them are increased by the same number of times, then sales will fall in mind reducing the desire to purchase this product. However, the degree of reduction in bread sales will be less than pepsi sales. It is clear that for the nutrition of people Pepsi is of less meaning. Therefore, Pepsi demand is more sensitive to price change than bread. The difference between the magnitude of the need and its existence should be understood. The value of demand changes through the schedule curve along with a change in price with the invariability of other factors. If other factors begin to change, then at unchanged prices the demand curve begins to move in the coordinate axes to the right or to the left.
What are these factors:
– Changing customer income. This leads to the fact that at an unchanged price, the buyer can purchase a different amount of goods. If the income has increased, then you can purchase more goods. In this case, the demand curve will shift to the right and, conversely, with a decrease in income.- the appearance of a substitute for goods reduces the need for basic products. Demand curve will shift to the left.- change in the usefulness of the goods, in particular due to the change in its quality. With an unchanged price of the product, the demand curve will shift in one direction or another on the coordinate field.- climatic changes will affect the change in the need, primarily on seasonal goods with the corresponding shift of the demand curve.- Changing the style, tastes, traditions, habits of people will also affect the shift of the demand curve.
Observe such factors and they will help you as excellent indicators of the need for a particular product.