Demand

“The Demand for a firms product is influenced by a number of factors, some of which may be influenced by the firm and others which may not.” Explain and discuss. Where there is demand there is a supplier and sometimes suppliers can create demand. There are many factors that influence demand for goods and services in the market place, some are the result of natural demand born of basic necessity or perceived needs, however firms …

…will increase. Thus either of the following will increase demand: Price of a substitute good increases Price of a compliment good decreasesAnd either of the following will decrease demand Price of a substitute good decreases Price of a compliment good increases I hope I have illustrated the variety of influences that affect the demand for products, both in areas that the firm play a part in, and ones that go beyond the firm’s scope.