The consumer demand curve illustrates the cost people are willing to pay for a certain quantity of a good. The market demand curve will be the sum of all individual demand curves. This shows the quantity of a good consumers plan to buy at different prices.
Tastes and preference of consumer: Due to taste and preference the demand for a commodity changes. For example— demand for cloths has come down for the trouser and cloth.
Income of the consumer: When the customers income increase more will be demanded.
Price of substitutes: Some of the goods can be substituted for other goods. For example— tea and coffee are substitutes while price of coffee increase, the price of tea remains the same. So the demand for tea then increase and demand for coffee decreases. The demand for substitutes moves in the opposite direction.
Number of consumers: Size of population is an important determinant of demand. The larger the population the more the demand when number for a consumer increase, there will be a greater demand for goods.
Distribution of income: Distribution of income affects the consumption pattern for various good. If the govt. attempts redistribution of income to make it equitable the demand for luxuries will decline and the demand for necessity of life will increase.
State of business: During boom, demand will expand and during depression demand will contract.
Consumer Inattentiveness: When the price of wheat flour or price of elasticity falls, the consumer identifies new uses for the product. It creates new demand for the product.
