Theory of demand Term Paper Example | Topics and Well Written Essays - 2000 words

Theory of assume - Term Paper fountAs the price of goods and services rise, the quantity demand by consumers goes down. Siddiqui (35) further describes demand as that impelling desire which can be satisfied meaning that desires are simply imaginations. It is required that the demand goodness should be available at a certain place, time, and price. Demand must satisfy the following requirements desire for the specific commodity sufficient resources to leveraging the desired commodity willingness to spend the resources and the availability of the commodity.In addition, demand can also be used to measure or predict the quantity of commodities and services which the buyers would be motivated to buy in a market at a given time and at a given place. The changes in the price of the commodities that are related to that which a consumer uses affects the market demand for it and an character of this would be the price of margarine (which the consumer does not normally use) is much lower than the price of butter. Inevitably, the consumer will mold to go for the cheaper return although their preference lies with the more expensive one. The demand for certain commodities may also be affected by the changes of the income of emf buyers, for example, if the income of a buyer is reduced, then he will opt to purchase cheaper commodities in line with his diminished income but if the income is increased, then the buyers demand for the same product at higher prices will increase significantly. The future expectations of buyers almost always have a magnetic dip of influencing the market demand of a product and this is usually displayed by considering the income security of potential buyers. If a potential buyer is confident in his belief that his future income will be stable, the he is more potential to spend more in buying both the commodities that he needs and wants. If however his future income is actually insecure,