1, the market demand the meaning
demand refers to a certain period of time and under certain price conditions, the consumer of a commodity or service is willing and able to purchase the number must be noted, demand and usually the need is different. There are two elements of market demand, first, consumers are willing to buy, that is the desire to purchase; consumers to buy, that ability to pay, both are indispensable.
Market demand refers to certain customers in certain areas, a certain amount of time, the marketing environment, and certain market marketing programs are willing and able to purchase the quantity of a commodity or service. Seen the market demand is the sum of consumer demand.
2, the main factors determine the demand basic elements
of affecting demand:
1) consumer preferences.
In the market, even if the income is the same consumers, because each person's personality and preferences are different, the demand for goods and services are also different. Consumer preferences dominate the consumer choice between the same or similar goods of value in use. However, people's consumption preferences are not fixed, but in a series of factors under slowly changing.
2) the consumers personal income
the consumer income generally refers to the per capita income of a society. Increase or decrease in revenue is an important factor affecting demand. In general, the increase in consumer income will lead to increased demand, and vice versa. However, for certain products, the demand as incomes increase and decrease. With the rapid economic growth, consumer income levels will continue to improve, in the case of supply of the same or attack a slower rate than revenue growth, on the one hand World pipe network reported that the world's steel pipe network to provide the world's steel pipe network editor , market prices slowly rise, on the other hand will cause commodity demand increase.
3) price
This refers to the price of a product. The price is the most important factor affecting demand. In general, changes in prices and demand in the opposite direction changes.
4) the price of substitutes.
So-called alternatives, the use of similar value, can be substituted to meet the needs of the people unified goods, such as gas and electricity, oil and coal, public transportation and private cars. In general, the alternative to a certain kind of commodity prices between the commodities to improve consumer demand turned to alternative goods, so increased demand for alternatives, substitutes reduced demand, and vice versa.
5) Xu supplements price
of the so-called complementary goods, refers to the use value must be mutually supplementary in order to meet the needs of people of a certain goods such as automobiles and gasoline, household appliances and power. Between complementary products, including a commodity price rise to reduce demand, it will cause another demand for a commodity decreases.
6) the expected
expected people a forecast of economic activity and judgment. If consumers expect prices to rise, it will stimulate people to be purchased in advance; if the expected price will fall, many consumers will postpone the purchase.
7) other factors.
Such as the variety of goods, quality, advertising, location, season, national policy. The
of them, affecting demand is the most critical factor is the commodity price. The
3, the law of demand
Under normal circumstances, demand and price changes were changes in the opposite direction, that is, higher commodity prices, the consumers of its purchases will be reduced, and vice versa. This was the opposite direction to change the relationship between price and demand, called the law of demand World pipe network reported that the world's steel pipe network to provide the world's steel pipe network editor .
Reason why the law of demand, because of the price change has two effects. On an effect of the income effect. Any decline in commodity prices are the same as real incomes rise, consumers use the same money you can buy more of this commodity. Free to a commodity price declines, will increase its purchases. The second effect is the substitution effect. A combination of the two commodities, one commodity prices fell, consumers will increase the purchase of such commodities to reduce the purchase of another commodity, which makes a certain decline in commodity prices led to its demand increase. The collective effect of the income and substitution effects in demand and prices change in the opposite direction.