Determinants of demand - Revision history

Vipul: /* Determinants of individual demand */

2020-03-30T00:21:07Z

Determinants of individual demand

← Older revision		Revision as of 00:21, 30 March 2020
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	# The prices and nature of [[complementary good]]s, i.e., goods for which increased consumption makes the consumption of the given good more worthwhile. A drop in the price of complementary goods leads to an increase in demand, ceteris paribus.		# The prices and nature of [[complementary good]]s, i.e., goods for which increased consumption makes the consumption of the given good more worthwhile. A drop in the price of complementary goods leads to an increase in demand, ceteris paribus.
	# The [[disposable income]] that the household has. More specifically, the fraction of household income that it is generally willing to spend on that or related commodities. An increase in income leads to an increase (or at any rate, no decrease) in demand for most goods. This is termed the [[income effect]]. Goods for which the income effect is reversed are typically [[inferior good]]s. For these good, demand may drop with a rise in income.		# The [[disposable income]] that the household has. More specifically, the fraction of household income that it is generally willing to spend on that or related commodities. An increase in income leads to an increase (or at any rate, no decrease) in demand for most goods. This is termed the [[income effect]]. Goods for which the income effect is reversed are typically [[inferior good]]s. For these good, demand may drop with a rise in income.
	# Expectations of future prices. This is particularly important for durable goods for which there is no urgency to purchase. In general, if future prices are expected to be lower, demand is less for a given price, because a person decides to delay the purchase. If future prices are expected to be higher, demand may be higher for a given price, because a person prefers to buy now before the good becomes too expensive.		# Expectations of future prices and availability of the good, as well as of complements and substitutes: This is particularly important for durable goods for which there is no urgency to purchase. In general, if future prices are expected to be lower, demand is less for a given price, because a person decides to delay the purchase. If future prices are expected to be higher, demand may be higher for a given price, because a person prefers to buy now before the good becomes too expensive.
	# The surrounding circumstances, such as climate, weather, crime levels, that have an effect on the desirability of possessing the good. This is sometimes folded under ''tastes and preferences'' -- however, surrounding circumstances could change without any change in tastes and preferences.		# Environmental need for the good: The surrounding circumstances, such as climate, weather, crime levels, that have an effect on the desirability of possessing the good. This is sometimes folded under ''tastes and preferences'' -- however, surrounding circumstances could change without any change in tastes and preferences.

	The [[demand curve]] (specifically, the [[individual demand curve]]) is a plot with quantity demanded on the horizontal axis and price on the vertical axis, keeping all other parameters constant (i.e., [[ceteris paribus]]).		The [[demand curve]] (specifically, the [[individual demand curve]]) is a plot with quantity demanded on the horizontal axis and price on the vertical axis, keeping all other parameters constant (i.e., [[ceteris paribus]]).

Vipul: /* Determinants of market demand */

2020-03-29T18:18:52Z

Determinants of market demand

← Older revision		Revision as of 18:18, 29 March 2020
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	# The various determinants of individual demand, averaged across all economic actors in the market.		# The various determinants of individual demand, averaged across all economic actors in the market.
	# The distribution of each of the determinants of individual demand across all economic actors in the market.		# The distribution of each of the determinants of individual demand across all economic actors in the market.

	~~<center>{{#widget:YouTube\|id=JWuHCaqDmck}}</center>~~

	==Determinants of change in demand==		==Determinants of change in demand==

Vipul: /* Definition */

2016-05-30T20:06:36Z

Definition

← Older revision		Revision as of 20:06, 30 May 2016
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	The '''determinants of individual demand''' of a particular good, service or commodity refer to all the factors that determine the quantity demanded of an individual or household for the particular commodity. The main determinants of demand are:		The '''determinants of individual demand''' of a particular good, service or commodity refer to all the factors that determine the quantity demanded of an individual or household for the particular commodity. The main determinants of demand are:

	# The (unit) price of the commodity.		# The (unit) price of the commodity. '''NOTE''': The price affects the quantity demanded but not the demand curve itself (which is, by definition, a plot of the relationship between price and quantity demanded). Therefore, it is technically only a determinant of the ''quantity demanded'' and not of demand. However, it is commonly included in the list of determinants of demand.
	# The tastes and preferences of the individual or household.		# The tastes and preferences of the individual or household.
	# The prices and nature of [[substitute good]]s, i.e., goods whose consumption can replace the consumption of the given good. The cheaper and better the substitute goods, the less the demand, ceteris paribus. This is termed the [[substitution effect]].		# The prices and nature of [[substitute good]]s, i.e., goods whose consumption can replace the consumption of the given good. The cheaper and better the substitute goods, the less the demand, ceteris paribus. This is termed the [[substitution effect]].

Vipul: /* Definition */

2012-12-22T22:37:31Z

Definition

← Older revision		Revision as of 22:37, 22 December 2012
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	# The various determinants of individual demand, averaged across all economic actors in the market.		# The various determinants of individual demand, averaged across all economic actors in the market.
	# The distribution of each of the determinants of individual demand across all economic actors in the market.		# The distribution of each of the determinants of individual demand across all economic actors in the market.

			<center>{{#widget:YouTube\|id=JWuHCaqDmck}}</center>

	==Determinants of change in demand==		==Determinants of change in demand==

Vipul: /* Determinants of individual demand */

2012-03-01T18:55:54Z

Determinants of individual demand

← Older revision		Revision as of 18:55, 1 March 2012
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	# The [[disposable income]] that the household has. More specifically, the fraction of household income that it is generally willing to spend on that or related commodities. An increase in income leads to an increase (or at any rate, no decrease) in demand for most goods. This is termed the [[income effect]]. Goods for which the income effect is reversed are typically [[inferior good]]s. For these good, demand may drop with a rise in income.		# The [[disposable income]] that the household has. More specifically, the fraction of household income that it is generally willing to spend on that or related commodities. An increase in income leads to an increase (or at any rate, no decrease) in demand for most goods. This is termed the [[income effect]]. Goods for which the income effect is reversed are typically [[inferior good]]s. For these good, demand may drop with a rise in income.
	# Expectations of future prices. This is particularly important for durable goods for which there is no urgency to purchase. In general, if future prices are expected to be lower, demand is less for a given price, because a person decides to delay the purchase. If future prices are expected to be higher, demand may be higher for a given price, because a person prefers to buy now before the good becomes too expensive.		# Expectations of future prices. This is particularly important for durable goods for which there is no urgency to purchase. In general, if future prices are expected to be lower, demand is less for a given price, because a person decides to delay the purchase. If future prices are expected to be higher, demand may be higher for a given price, because a person prefers to buy now before the good becomes too expensive.
	# The surrounding circumstances, such as climate, weather, crime levels, that have an effect on the desirability of possessing the good. (This is sometimes folded under ''tastes and preferences'' -- however, surrounding circumstances could change without any change in tastes and preferences.		# The surrounding circumstances, such as climate, weather, crime levels, that have an effect on the desirability of possessing the good. This is sometimes folded under ''tastes and preferences'' -- however, surrounding circumstances could change without any change in tastes and preferences.

	The [[demand curve]] (specifically, the [[individual demand curve]]) is a plot with quantity demanded on the horizontal axis and price on the vertical axis, keeping all other parameters constant (i.e., [[ceteris paribus]]).		The [[demand curve]] (specifically, the [[individual demand curve]]) is a plot with quantity demanded on the horizontal axis and price on the vertical axis, keeping all other parameters constant (i.e., [[ceteris paribus]]).

Vipul: /* Other determinants */

2012-02-16T05:28:13Z

Other determinants

← Older revision		Revision as of 05:28, 16 February 2012
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	\|-		\|-
	\| Nature of substitute good \|\| individual \|\| better substitution \|\| ambiguous. Demand could shift between the two substitutes depending on the relative prices. \|\|		\| Nature of substitute good \|\| individual \|\| better substitution \|\| ambiguous. Demand could shift between the two substitutes depending on the relative prices. \|\|
			\|-
			\| Nature of substitute good \|\| individual \|\| worse substitution \|\| ambiguous. Demand could shift between the two substitutes depending on the relative prices. \|\|
	\|-		\|-
	\| Price of complementary good \|\| individual \|\| increase in price \|\| negative, hence contraction of demand curve \|\| see [[cross-price elasticity of demand]]		\| Price of complementary good \|\| individual \|\| increase in price \|\| negative, hence contraction of demand curve \|\| see [[cross-price elasticity of demand]]
	\|-		\|-
	\| Price of complementary good \|\| individual \|\| decrease in price \|\| positive, hence expansion of demand curve \|\| see [[cross-price elasticity of demand]]		\| Price of complementary good \|\| individual \|\| decrease in price \|\| positive, hence expansion of demand curve \|\| see [[cross-price elasticity of demand]]
			\|-
			\| Nature of complementary good \|\| individual \|\| increase in complementarity \|\| positive (generally), hence expansion of demand curve \|\|
	\|-		\|-
	\| Disposable income \|\| individual \|\| increase in income \|\| positive (usually), hence expansion of demand curve \|\| see [[Engel curve]] and [[income-elasticity of demand]]. Goods for which this is true are termed [[normal good]]s. Exceptions are termed [[inferior good]]s.		\| Disposable income \|\| individual \|\| increase in income \|\| positive (usually), hence expansion of demand curve \|\| see [[Engel curve]] and [[income-elasticity of demand]]. Goods for which this is true are termed [[normal good]]s. Exceptions are termed [[inferior good]]s.

Vipul: /* Determinants of individual demand */

2011-07-25T15:12:43Z

Determinants of individual demand

← Older revision		Revision as of 15:12, 25 July 2011
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	# The prices and nature of [[substitute good]]s, i.e., goods whose consumption can replace the consumption of the given good. The cheaper and better the substitute goods, the less the demand, ceteris paribus. This is termed the [[substitution effect]].		# The prices and nature of [[substitute good]]s, i.e., goods whose consumption can replace the consumption of the given good. The cheaper and better the substitute goods, the less the demand, ceteris paribus. This is termed the [[substitution effect]].
	# The prices and nature of [[complementary good]]s, i.e., goods for which increased consumption makes the consumption of the given good more worthwhile. A drop in the price of complementary goods leads to an increase in demand, ceteris paribus.		# The prices and nature of [[complementary good]]s, i.e., goods for which increased consumption makes the consumption of the given good more worthwhile. A drop in the price of complementary goods leads to an increase in demand, ceteris paribus.
	# The disposable income that the household has. More specifically, the fraction of household income that it is generally willing to spend on that or related commodities. An increase in income leads to an increase (or at any rate, no decrease) in demand for most goods. This is termed the [[income effect]]. Goods for which the income effect is reversed are typically [[inferior good]]s. For these good, demand may drop with a rise in income.		# The [[disposable income]] that the household has. More specifically, the fraction of household income that it is generally willing to spend on that or related commodities. An increase in income leads to an increase (or at any rate, no decrease) in demand for most goods. This is termed the [[income effect]]. Goods for which the income effect is reversed are typically [[inferior good]]s. For these good, demand may drop with a rise in income.
	# Expectations of future prices. This is particularly important for durable goods for which there is no urgency to purchase. In general, if future prices are expected to be lower, demand is less for a given price, because a person decides to delay the purchase. If future prices are expected to be higher, demand may be higher for a given price, because a person prefers to buy now before the good becomes too expensive.		# Expectations of future prices. This is particularly important for durable goods for which there is no urgency to purchase. In general, if future prices are expected to be lower, demand is less for a given price, because a person decides to delay the purchase. If future prices are expected to be higher, demand may be higher for a given price, because a person prefers to buy now before the good becomes too expensive.
	# The surrounding circumstances, such as climate, weather, crime levels, that have an effect on the desirability of possessing the good. (This is sometimes folded under ''tastes and preferences'' -- however, surrounding circumstances could change without any change in tastes and preferences.		# The surrounding circumstances, such as climate, weather, crime levels, that have an effect on the desirability of possessing the good. (This is sometimes folded under ''tastes and preferences'' -- however, surrounding circumstances could change without any change in tastes and preferences.

Vipul: /* Determinants of change in demand */

2010-09-11T14:04:12Z

Determinants of change in demand

← Older revision		Revision as of 14:04, 11 September 2010
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	==Determinants of change in demand==		==Determinants of change in demand==

			===Effect of unit price===

			Unit price has a direct effect on the quantity demanded but not on the [[demand curve]] (which is a plot of quantity demanded against individual price). The relationship is studied by studying the [[demand curve]]. The most important feature of this relationship is the [[law of demand]], which asserts that an increase in unit price leads to a decrease in quantity demanded.

			===Other determinants===
	The cause of a change in quantity demanded, either at the individual or market level, is usually a change in one of the determinants of demand. Given below is a comprehensive table of examples:		The cause of a change in quantity demanded, either at the individual or market level, is usually a change in one of the determinants of demand. Given below is a comprehensive table of examples:

Vipul: /* Determinants of change in demand */

2010-09-11T14:02:15Z

Determinants of change in demand

← Older revision		Revision as of 14:02, 11 September 2010
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	The cause of a change in quantity demanded, either at the individual or market level, is usually a change in one of the determinants of demand. Given below is a comprehensive table of examples:		The cause of a change in quantity demanded, either at the individual or market level, is usually a change in one of the determinants of demand. Given below is a comprehensive table of examples:

	{\| class="sortable" border="1		{\| class="sortable" border="1"
	! Determinant of demand !! Individual or market? !! Nature of change !! Effect on quantity demanded ''[[ceteris paribus]]'' and hence on demand curve !! Measure of sensitivity		! Determinant of demand !! Individual or market? !! Nature of change !! Effect on quantity demanded ''[[ceteris paribus]]'' and hence on demand curve !! Measure of sensitivity
	\|-		\|-

Vipul at 14:01, 11 September 2010

2010-09-11T14:01:59Z

@@ Line 3: / Line 3: @@
 ===Determinants of individual demand===
-The '''determinants of individual demand''' of a particular good, service or commodity refer to all the factors that determine the demand of an individual or household for the particular commodity. The main determinants of demand are:
+The '''determinants of individual demand''' of a particular good, service or commodity refer to all the factors that determine the quantity demanded of an individual or household for the particular commodity. The main determinants of demand are:
 # The (unit) price of the commodity.
@@ Line 22: / Line 22: @@
 # The various determinants of individual demand, averaged across all economic actors in the market.
 # The distribution of each of the determinants of individual demand across all economic actors in the market.