Demand Meaning of Demand : Demand of commodity refers to the quantity of a commodity which a consumer is willing to buy at a given price, and time. Demand Function: Demand Function is the functional relationship between demand and factors affecting demand. Dx = f (Px, Po, Y, T, E) Factors affecting Demand:- Following are the factors which affect the Demand. 1. Price of Commodity: When the price of commodity rises demand of commodity will decrease and vice-versa. 2. Price of other related commodity: Price of other commodity affect the demand of commodity in two ways: a) Substitute Goods:- In the case of substitute goods, the demand for a commodity X rises with a rise in the Price of commodity Y and vice versa. Example- Tea and coffee b) Complementary Goods:- In case of complementary goods, the demand for a commodity X rises with the fall in the Price of commodity Y and vice versa. Example: Car and Petrol, Ink and Pen, 3. Income of
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