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The demand for commodity C doubled in five months even though the price of the commodity remained the same over the same period. What factors may account for the increase in demand?

      

Give factors that may account for the increase in demand even though the price of the commodity remained the same.

  

Answers


Maurice
(i) Increase in price of the substitutes of the commodity.

(ii) A fall in the price of jointly demanded commodities.

(iii) Shortage in the availability of substitute commodities.

(iv) Increase in population.

(v) Increase in consumer's income.

(vi) Good product promotion.

(vii) Change in taste and preferences in favour of the product.

maurice.mutuku answered the question on July 13, 2017 at 05:29


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