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The price of a product is one of the most basic factors affecting the demand for that product. The amount of a certain product that
The price of a product is one of the most basic factors affecting the demand for that product. The amount of a certain product that a consumer buys depends on its price. An inverse relationship exists between the price of the product and the quantity that consumers are willing to purchase. This means that as the price of a product goes up, people will buy less of that product. As the price goes down, people will buy more. There are of course other factors, besides price changes that influences an individual's quantity demanded. These other factors are usually within the model of demand and supply given less weight than price. The other factors are held constant to arrive at an equilibrium price level. Other economic factors affecting demand is the demand curve shows the effect of changes in the price of the good on quantity demanded holding all other factors such as income, prices of other goods constant. Changes in factors other than the price of the good itself lead to shifts in the demand curve. Demand may be affected by factors determined by the consumer, the provider, the supply or location of services. The demands of individuals for a product are different from each other. The incomes and admiration systems of individuals are different from each other. But this difference influences only the tendency of
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