(i) Increase in demand occurs due to the following determinants:
(a) The fashion for a goods increases or people’s tastes and preferences become more favourable for the goods.
(b) Consumers income increases.
(c) Prices of the substitutes of the goods have risen.
(d) Prices of complementary goods have fallen.
(e) Tendency of the people to consume has increased.
(f) As a result of population growth and expansion in the market, the number of goods consumers has increased.
(ii) Decrease in demand occurs due to the following determinants:
(a) A goods has gone out of fashion or the tastes of the people for a commodity have declined.
(b) Incomes of the consumers have fallen.
(c) The prices of the substitutes of the commodity have fallen.
(d) The prices of the complements of that commodity have risen.
(e) The prospensity of the people to consume has declined. In other words, the tendency to save has increased.
