Market forces
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Good day steemalive,
Am back with another post, where I will be talking about the economy today and what controls to be frank, what controls the economy and prices of goods in a country and what dictates what the market trends is. This topic today, if understood can give you proper business upliftment, I assure you.Today's topic is no other than demand itself, we will be taking the definition, laws and determinant in this post, so put on your seatbelt we are about reaching the highway 😎😎😎.
Demand is an essential part of any economy, it what causes downfall in price of a particular commodity or rise in price of that commodity, it's an element that will dictate if a business will succeed or not, but first what's demand;
Demand is been defined as the amount of a commodity (quantity), that consumers are willing and able to buy at a particular price and a given period of time. In this definition we have key points which are, willing, and price, which shows that for a commodity to be in demand, consumers have to the ability to pay for that price and also be willing to do so.
Law of demand
• ceteris paribus (in all things being equal), the demand of a commodity increase with a fall in the price, and decrease with a rise in price of that commodity, humans or as I like to say consumers are rational thinkers they like going for things with quality and still a cheap price, and that's what brought about this law, looking at this law also you get to notice that demand of a commodity (quantity demanded) has negative relationship with that of price.
And vice versa, although there is one law of demand popularly known as abnormal law of demand where an increase in price causes an increase in quantity demanded, it's really rare in business.
Determinants of demand
- Price of the commodity
- Prices of related commodity
- Income of the consumers
- Taste and preference.
Here is the end of my post, if you liked it please share, upvote my post, and follow for more don't forget to share your thoughts also.
My regards to
@steemalive
@samuel20
Hello @jammyroberts,
You have done well by educating us on the topic market forces.The demand of any commodity has a way of affecting its price.Once the demand for the commodity is high,the price will definitely go high and vice versa.I hope many people will learn this market principle through this post.
Your post wasn't All4One.Pls correct me if I am wrong.
I made a mistake before posting sorry am going to edit thanks for reading, I really wanted it to be all4one.
I agree with this statement because when many people are trying to get one thing the price of the particular commodity goes up.
True facts, thanks for agreeing with me.
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