Economics SSS 2 First Term

WEEK 3

Concept of demand and supply

Performance Objectives

Student should be able to:

1. Identify factors affecting demand.
2. Differentiate between types of demand.
3. Explain the change in demand and change in quantity demanded.

Content

Factors affecting demand

Demand may be defined as the number of goods or services that consumers are willing and able to buy at alternative prices over a given period. Some of the factors affecting the demand are as follows:

1. Price: According to the law of demand, the higher the price of a commodity the lower the quantity that will be demanded of that commodity and vice versa
2. The price of other commodities: If a commodity has a close substitute, when the price of such commodity increases, the consumer may demand the close substitutes if its price remains unchanged.
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