Discuss the Factors, which Affect Demand: Explain the Concept of Price Elasticity of Demand and Its Significance to Governments and Producers

Demand is the quantity of goods or services consumers will buy at a particular price, at a particular time period. Market demand refers to the sum of individual demand for a good or service. It is assumed that the demand being represented is effective demand- the ability of consumers not just to want, but be able to buy the product. Quantity demanded is the inverse function of price, however there are other factors which influence the level of demand.
Factors influencing individual demand differ from the factors influencing market demand. …