Research on the Factors that Affect Demand and the Effects of Changes in Demand on Prices

Abstract

Demand theory is one of the major fundamental and important theories of economics. It explores the relationship between consumer demand and price. Consumer demand is influenced by a variety of factors, which leads to different price changes that affect the entire social economic changes. Through a literature review, this article explores the analysis of demand theory and the three factors that influence demand, income, relevant markets and advertising. The article points out that willingness to pay and utility theory can be used to understand demand theory, and this research also analyzes the impact of income, relevant products, and advertisement on demand.