Determinants of Market Demand in Economics Class 11 Notes

Topic Determinants of Market Demand
Subject Microeconomics
Category CBSE Class 11 Notes

 

Determinants of Market Demand

The various factors affecting Market demand are :-

(1) Size and composition of Population :-

Market demand for a commodity is affected by size of population in the country. Increase in population in the country. Increase in population in the country. Increase in population raises the market demand, while decrease in population reduces the market demand. Composition of population i.e. ratio of males, females, children and number of old people in the population also affects the demand for a commodity. For example :- if a market has larger proportion of women, then there will be more demand for articles of their use such as lipstick, sarees etc.

(2) Season and weather : –

The seasonal and weather conditions also affect the market demand for a commodity. For example : – during winters, demand for woolen clothes and jackets increases, whereas, market demand for raincoat and umbrellas increases during the rainy season.

(3) Distribution of Income : –

If income in the country is equitably distributed, then market demand for commodities will be more. However if income distribution is uneven i.e. people are either very rich or very poor, then market demand will remain at lower level.

 

Consumer’s Equilibrium and Demand

MCQs for Class 11

CBSE Notes for Class 11

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