Factors that leads to increase in demand and Factors that leads to decrease in demand?

Factors that lead to an increase in demand:

1. Increase in consumer income: When consumers have more disposable income, they are more likely to spend on goods and services, leading to an increase in demand.

2. Population growth: A larger population means more potential consumers, which can lead to an increase in demand for various products and services.

3. Consumer tastes and preferences: If there is a shift in consumer preferences towards a particular product or service, it can lead to an increase in demand for that specific item.

4. Advertising and marketing: Effective advertising and marketing campaigns can create awareness and desire for a product, leading to an increase in demand.

5. Availability of credit: When credit is easily accessible, consumers may be more willing to make purchases, leading to an increase in demand.

Factors that lead to a decrease in demand:

1. Decrease in consumer income: When consumers have less disposable income, they are likely to cut back on spending, leading to a decrease in demand.

2. Change in consumer tastes and preferences: If there is a shift in consumer preferences away from a particular product or service, it can lead to a decrease in demand for that item.

3. Increase in prices of related goods: If the prices of substitute goods or complementary goods increase, consumers may choose to purchase alternative products, leading to a decrease in demand for the original product.

4. Negative publicity or bad reputation: If a product or brand receives negative publicity or develops a bad reputation, it can lead to a decrease in demand as consumers may choose to avoid it.

5. Economic downturn or recession: During periods of economic downturn or recession, consumers tend to reduce their spending, leading to a decrease in demand for various goods and services.