Where there is demand there is a supplier and sometimes suppliers can create demand. There are many factors that influence demand for goods and services in the market place, some are the result of natural demand born of basic necessity or perceived needs, however firms can create desire for a product through the study and manipulation of the forces in demand and supply.

Every firm which provides goods or services to fee paying customers must, by its very nature, charge a price for that good or service, to pay for its costs, have retained profits for investments and to keep its shareholders happy.

The demand for a firm's product is determined by various factors, some of these factors are in the hand of the firm, such as price, advertising, packaging, brand name, and quality. One of the firm's influences on the demand for a product is price; the Law of Demand states that when the price of a good rises, the level of demand for that good will fall

Ø as less people are now able to buy the good based on their income

Ø as more people switch to substitute goo

and when the price falls, demand for that good will rise

Ø as more people are now able to buy the good based on their income

Ceteris paribus - other things being equal

Ø as more people switch from substitute goods now may appear less attractive given their relative price

Some common words found in the essay are:
Law Demand, Inferior GoodsChanges, , increase demand, demand products, income levels, brand name, Ø people, people able buy, demand price, demand product, affect demand, people able, people switch, demand product price, Ø people able, income levels rise, affect demand products,
Approximate Word count = 1563
Approximate Pages = 6 (250 words per page double spaced)