Background Firms would always wish to sell all goods and services they produce. On the other hand consumers desire to have all goods they need supplied to them. Some markets may have few suppliers of similar or differentiated goods .In the markets the number of suppliers may vary from one to infinity. The following photos shows various persons involved in trade;
DEMAND AND SUPPLY
Consumers are willing and ready to buy more goods and services when prices are low to get value for their money.On the other hand suppliers are wlling and able to bring more goods and services to the market when prices are high in order to maximize profits.
Prices of goods and services are determined by market forces of supply and demand,tendering,bargaining,government policy such as price control among others.
Meaning of demand
Demand refers to the quantity of a commodity that a buyer is willing and able to buy at a given price over a specific period of time.This picture shows a consumer paying for rice.
Demand is backed by ability to buy a commodity at a given price over a specific period of time.
The diagram below illustrates the meaning of demand.
Factors influencing demand of a product
Price of the commodity
Under normal circumstances the lower the price the higher the quantity of a commodity demanded and vice versa other factors remaining constant that is the law of demand.
Other Goodies for KCSE ONLINE Members!
Coursework e-Content CD covers all the topics for a particular class per year and costs 1200/- ( Per Subject per Class ).
Purchase Online and have the CD sent to your nearest Parcel Service. Pay the amount to Patrick 0721806317 by M-PESA then provide your address for delivery of the Parcel.
Alternatively, you can use BUY GOODS TILL NUMBER 827208 Ask for clarification if you get stuck.
Install ADOBE Flash Player for Best Results
For Best results INSTALL Adobe Flash Player Version 16 to play the interactive content in your computer. Test the link below to find out if you have Adobe Flash in your computer.