The determinants of the market demand curve are:
(i) Population : Along with population growth, the demand increases, and it decreases along with population decline. The reason for this is that due to the increase (or decrease) of population size, the number of buyers of the product increases (or decreases), the structure of the population also affects the demand; for example the demand for goods for women increases when population has a larger number of women.
(ii) Distribution of Income : Market demand is also influenced by changes in income distribution in society. If income is evenly distributed, then there will be more demand. If the income is distributed unequally, then the more demand will concentrate with rich people. If a large area of society is poor then due to its low income, the demand of the market will also be reduced.
