Demand

Question 1

Demand

Answer 1

The quantity that customers are willing and able to buy at a given price in a given time

Question 2

Factors affecting demand

Answer 2

-Fashion
-Income
-Advertising/branding
-Price
-Demographic changes
-External shock-brexit & covid
-Seasobnal factors-ice cream, pumkinns

Question 3

Price

Answer 3

Customers unable to afford high prices
-Opportunity cost, high price less value you feel you’re getting
-Gives message about value-quality

Question 4

Price of other goods

Answer 4

Substitutes-If these are cheaper, customers may buy these instead of your product
Complimentary-Cheaper persuades customers to buy your goods over others

Question 5

Customer incomes

Answer 5

Normal goods-when income grows demand grows proportonatly
Luxury-more than proportionate increase in demand as income grows
Inferior-As incomes grow demand decreases

Question 6

Fashion

Answer 6

-Demand is affected by changes in fashion e.g loom bands
-Some goods are eternally fashionable e.g Nike

Question 7

Advertising + branding

Answer 7

-Increases awareness
-creates a brand image
-Persuade customers to buy
-Valuable in the long run

Question 8

Demand risks

Answer 8

Undiversiyed deamdn-one product is responsible fopr most demand
-Diversification spreads rick
Overtrading