Market demand and factors affecting it

In each market there are two main subject: the seller and the buyer.They are dependent on the size of demand and supply of any goods (services).Market demand is the volume of products, goods that consumers will buy at a certain price at a specific time unit.The offer - the amount of goods (services), which producers are willing to provide at the same moment on this value.

market demand is influenced by many factors.Chief among them is the cost.Thus, with the high price level of demand will be significantly less than at low.The inverse relationship observed in the proposal.That is, when the high cost producers are ready to give the market more goods (services).

Market demand is shaped not only under the influence of prices.Consider other factors that affect the purchasing power.First of all, the income of consumers.The more money people have at their disposal, the higher the level of demand.

significantly on purchases affect consumer expectations.If people believe that in the near future prices wil

l go up on certain products, the demand for these products can be much larger.Consumers simply will reserve for the future.Accordingly, after a short period of time sales have fallen again.

Supply and demand in a market economy is largely dependent on fashion.If the clothes, shoes and accessories comply with modern trends, the young people trying to buy them.In this fashion goods can be expensive.But 1-2 season these models will be 3-5 times cheaper, while the requirements are virtually not observed.

market demand is also affected by advertising.If the seller does not spare funds to disseminate information about their product in the media, buyers, even for the interest taken to try something new.If the product they like, then later a growing demand.

Another factor is the quality of products (services).Consumers, of course, will give preference to products of higher quality.Especially important is the figure for the wealthy.They are primarily appreciate things comfort and reliability.

important non-price factors - traditions, customs in the family, a group of people, nation, country.For example, in anticipation of the holiday, which is celebrated only in certain states, will increase the demand for gifts.In other countries, such a situation will not occur.

affect demand and the level of income of the population.The increase in wages, the issuance of the thirteenth salary, bonuses, etc.significantly increase consumer demand.People are willing to spend more money to receive benefits.Accordingly, the occurrence of crises is the strong decline in sales.

Demand is divided into elastic and inelastic.The first type concerns articles which have multiple peers.That is, if the goods with elastic demand suddenly rises in price, and other brand similar product from a competitor will sell a little cheaper, then the buyer will buy at a lower cost.This applies to clothes, shoes, a number of food products.Inelastic demand are essential commodities, such as bread, milk, cereals, etc.

situation pent-up demand due to the fact that many products hype begins in a certain time period, season.For example, warm clothes and shoes people spend large sums in the early fall, spring and winter.The demand for sugar increases during the ripening berries.And eggs consumers are taking in large quantities to such holidays as Easter.

We have considered the concept of "market demand" and its factors.We found that the actions of the customers affected not only the cost of goods and services, but also many non-price factors.