several new diamond mines? What are the major factors, in addition to the price, that influence demand or

supply?

LINK IT UP

Visit this website (https://openstax.org/l/toothfish) to read a brief note on how marketing strategies can

influence supply and demand of products.

What Factors Affect Demand?

We defined demand as the amount of some product a consumer is willing and able to purchase at each price.

That suggests at least two factors that affect demand. Willingness to purchase suggests a desire, based on what

economists call tastes and preferences. If you neither need nor want something, you will not buy it, and if you

really like something, you will buy more of it than someone who does not share your strong preference for it.

Ability to purchase suggests that income is important. Professors are usually able to afford better housing and

transportation than students, because they have more income. Prices of related goods can affect demand also.
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