Factors Affecting Consumer Demand

1262 Words6 Pages
Consumers has the sole power to dictate the supply and demand of any good. They do not realize the influence they over the market prices. Time has shown, if people, investors, and businesses stop purchasing goods and services, the economy will relapse. The theory of consumer choice can affect three different areas such as, Demand curve, Higher wages, and Higher interest rates. Since the theory affect these areas, consumers can governor its variations. What makes a consumer’s choice the goods or services over another? There are several factors that can inspire alteration in those areas for example price, availability, social responsibility of the company, convenience, enjoyment, familiarity. These factors that can affect consumer’s choice. When the consumers decide to purchase a good, they have considered several different aspects of it. Normally when the prices are low, consumer’s demand will increase in buying the good. Though price is the dominating contributing factor of consumer’s choice, they also considered all aspects, before making a purchase. The demand curve starts to shift to the right; it represents the product is becoming more in demand. If the prices are the low but the demand is not increasing for quality as an issue, it will shift to the left on the demand curve. There are some consumers who want cheaply made goods this will only effective if that demand was in demand. Consumer also influence the supply of a good. If the demand is high enough to create a
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