Question

‘There are certain special determinants of market demand, which are not observed in case of individual demand’. Discuss them briefly.

Answer 1

The special determinants of market demand are:

1. Size and composition of population: A larger population generally raises market demand, while its composition affects demand for particular goods.
2. Season and weather: For example, demand for woollen clothes rises in winter and demand for umbrellas rises in the rainy season.
3. Distribution of income: More equitable income distribution can raise market demand; highly unequal distribution may keep it lower.