Factors Influencing Demand Analysis

The video discusses various factors affecting demand, including price, income, population, future price expectations, tastes, advertisement, substitutes, complementary goods, taxation, and other influences like customs and climate. Each factor is explained with examples, highlighting how they impact consumer behavior and demand for goods.

Which factor is considered the most crucial in affecting demand?

• Advertisement

• Population

• Price

• Income

How does an increase in population affect demand?

• It stabilizes demand

• It increases demand

• It has no effect on demand

• It decreases demand

What might consumers do if they expect future prices to drop?

• Buy more immediately

• Postpone their purchases

• Buy less of other goods

• Increase their savings

How do consumer tastes and fashions influence demand?

• They only affect luxury goods

• They increase demand for fashionable products

• They decrease demand for all products

• They have no impact

What role does advertisement play in demand?

• It decreases demand

• It has no effect

• It increases demand

• It only affects luxury items

How do substitute products affect demand?

• They only affect complementary goods

• They affect demand inversely

• They increase demand for all products

• They have no effect

What is the effect of high taxes on consumer demand?

• It stabilizes demand

• It increases demand

• It decreases demand

• It has no effect

How does unequal income distribution impact demand?

• It stabilizes demand

• It has no effect

• It decreases overall demand

• It increases demand for luxury goods

Which of the following is an example of a social factor affecting demand?

• Diwali festival

• Population growth

• Price changes

• Income levels

How does climate change influence demand?

• It has no effect

• It decreases demand for all goods

• It only affects luxury items

• It affects seasonal goods