Question

What are the factors that influence the demand for and supply of goods and services in a market?

Answer 1

The demand for goods and services is influenced by factors such as price, income of consumers, tastes and preferences, prices of related goods, population and expectations about future prices. The supply is affected by factors such as price of the product, cost of production, availability of resources, technology, government policies, taxes and subsidies, and the number of producers. These factors together determine the quantity of goods and services bought and sold in a market.