Demand of an individual consumer indicates the various quantities of a good or service, the consumer is willing and able to buy at different prices during a particular time period, ceteris paribus.
According to the law of demand, there is a negative casual relationship between the price of a good and its quantity demanded over a particular time period, ceteris paribus: as the price of the good increases, quantity demand falls; as the price falls, quantity demanded increases, ceteris paribus.
There are six determinants that affects demand:
- Income the case normal goods
- Income in the case of inferior goods
- Preferences and tastes
- Prices of substitute good
- Prices of complementary goods
- Demographic (population) changes, i.e. changes in the number of buyers
demand falls and shifts left
demand rises and shifts right