What are the factors affecting the law of demand?

The law of demand is a fundamental economic principle that states that the quantity of a good or service demanded by consumers decreases as its price increases, and vice versa. There are various factors that influence the law of demand, such as changes in consumer income, tastes and preferences, prices of complementary and substitute goods, seasonality, and market conditions. Other factors may include demographic changes, advertising, and availability of credit. Changes in any of these factors can cause a shift in the demand curve, resulting in a change in the quantity demanded for a particular good or service. Therefore, understanding the factors affecting the law of demand is essential for businesses and policymakers to make informed decisions about pricing and other marketing strategies.

This mind map was published on 17 May 2023 and has been viewed 56 times.