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Question
State two factors affecting the market demand for a commodity.
Solution 1
Two factors affecting the market demand for a commodity:
- The pattern of income distribution: If the income distribution moves in favour of the poor people, the demand for commodities would increase among those people. On the other hand, if most of the national income is concentrated with rich people, the demand for luxury goods would increase among those people. So, the pattern of income distribution affects the market demand for a commodity.
- Climatic condition: During the winter season, the demand for woollen clothes increases. During the summer season, the demand for cotton clothes increases. Hence, the climatic condition affects the market demand for a commodity.
Solution 2
Two factors affecting Market Demand:
- Market demand of a product is affected by the price of a commodity.
- Seasonal and weather conditions also affect the market demand of a product.
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