The Determinants of Demand

By Jodi Beggs, About.com Guide

Economic demand- how much of an item one is willing, ready and able to purchase- depends on a number of different factors. For example, people probably care about how much an item costs when deciding how much to purchase. They might also consider how much money they make when making purchasing decisions.

Economists break down the determinants of an individual's demand into five categories:

• Price
• Income
• Prices of Related Goods
• Tastes
• Expectations

Demand is then a function of these five categories. Let's look more closely at each of the determinants of demand.

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• The Determinants of Demand
• Price as a Determinant of Demand
• Income as a Determinant of Demand
• Prices of Related Goods as Determinants of Demand
• Tastes as a Determinant of Demand
• Expectations as a Determinant of Demand
• Number of Buyers as a Determinant of Market Demand

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