Week 1 Final

Week 1 Final

Introduction

Demand is everything that a consumer aims to acquire at any given time. We must understand that it is only the desire to acquire certain well, not the consummation of such, which would be characterized as consumption (Blanchard & Quah, 1990).

Demand can be influenced by several factors such as:

The consumer tastes;

The relationship between the price of the good - the higher, the lower the demand for it;

The ratio of its price to the price of substitute goods. E.g. the price of butter and margarine;

The ratio of its price and the purchasing power of ...