Answer:
Measuring Consumer Demand
Consumer demand is typically measured in terms of the quantity of goods or services that consumers are willing to purchase at a given price. The demand for a product or service is determined by several factors, such as price, availability, and quality. Demand can also be affected by external factors, such as economic conditions, consumer confidence, and government policies.
Factors Affecting Consumer Demand
The primary factor that affects consumer demand is price. When the price of a product or service increases, demand decreases, and vice versa. Other factors that can affect consumer demand include availability, quality, and external factors.
Availability
Availability is the amount of a product or service that is available for purchase. If a product or service is scarce or difficult to obtain, demand for it will likely be higher. On the other hand, if a product or service is plentiful and easily accessible, demand for it may be lower.
Quality
The quality of a product or service can also affect consumer demand. Higher quality products tend to have higher demand than lower quality products. Consumers are often willing to pay more for higher quality goods or services.
External Factors
External factors such as economic conditions, consumer confidence, and government policies can also affect consumer demand. Changes in these factors may cause consumer demand to increase or decrease.
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