Economics: Demand: Factors Affecting Market Demand: Buyers, Income and Wealth, Climatic Condition (For CBSE, ICSE, IAS, NET, NRA 2022)

Doorsteptutor material for competitive exams is prepared by world's top subject experts: get questions, notes, tests, video lectures and more- for all subjects of your exam.

Factors Affecting Market Demand

Market demand is the total quantity of a commodity that all the individual buyers in the market are willing to buy at given prices per unit of time. In addition to the factors affecting individual demand for a commodity market demand is also influenced by the following factors.

Factors Affecting Market Demand

Number of Buyers

Number of buyers buying a commodity determines the demand for the commodity in the market. If the number of buyers of a commodity is large, market demand for the commodity will be more. On the other hand, if the number of buyers is small, market demand for the commodity will be less.

Distribution of Income and Wealth

If the distribution of income and wealth is more in favour of the rich, demand for the commodities preferred by the rich is likely to be higher. On the other hand, if the distribution of income and wealth is more in favour of poor, demand for the commodities preferred by the poor is likely to be higher.

Climatic Condition

It is generally observed that the demand for ice increases during summer season. So, the market demand for a commodity is also influenced by the climatic conditions.

Developed by: