State two factors affecting market demand for a commodity.

Open in App

Solution

Two factors affecting market demand for a commodity are:-
1) Own price of the commodity: When the price of the commodity rises the demand contracts whereas, when the price of the commodity falls, demand expands.
2) Population size: Demand increases with increase in the number of buyers for a commodity and vice-versa.

Suggest Corrections

Similar questions

Explain the factors affecting market demand.

When do we say there is excess demand for a commodity in the market?

Join BYJU'S Learning Program