General Demand Function Of Desktop Computers

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The general demand function represents the relationship between the demand of a product or service and the following six factors: the price of the product or service, the consumers’ income, price of related goods or services, the taste patterns of consumers, expected price of the good in some future period and number of the consumers in the market (Thomas & Maurice, 2012, pp. 40). This general demand function can be applied to all products and services to forecast the quantity that will be demanded based on the current market trends. The remainder of this paper will apply this general demand function to desktop computers and how the various factors affect the product demand.
The first factor to analyze is the price of desktop computers. Like all goods and services in the market, the price and the quantity demanded are inversely related as described in the law of demand. If the price of desktop computers rises, the demand will decrease. Similarly, if the price of desktop computers falls, the demand will rise. Consumers often watch for prices to drop or sales to occur before making big purchases to. Due to the inverse relationship between the demand and the price of the computers, the slope parameter would have a negative sign. This negative sign denotes that as one piece of the equation changes, the other will move in the opposite direction.
The second factor of the general demand function is the consumers’ income. Desktop computers are considered a normal good, or
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