Determinants of Demand: The determinants of demand are factors that influence the quantity of a good or service that consumers are willing and able to buy at various price levels. These determinants include:

1. Price of the Product: The price of the product itself is a significant determinant of demand. As mentioned earlier, there is an inverse relationship between price and quantity demanded. When the price increases, the quantity demanded generally decreases.
2. Income: Changes in consumers’ income levels affect their purchasing power and, consequently, their demand for goods and services. For normal goods, an increase in income leads to an increase in demand, while for inferior goods, an increase in income leads to a decrease in demand.
3. Price of Related Goods: The prices of substitute goods and complementary goods influence the demand for a particular product. Substitute goods are alternatives that can be used in place of each other, while complementary goods are products that are used together. An increase in the price of a substitute good tends to increase the demand for the original product, while an increase in the price of a complementary good tends to decrease the demand for the original product.
4. Consumer Preferences and Tastes: Consumer preferences and tastes play a significant role in determining demand. Changes in fashion trends, preferences, advertising, and marketing efforts can all affect consumer demand for a product.
5. Population and Demographics: Changes in population size, age distribution, and other demographic factors can influence demand. For example, a larger population generally leads to an increase in demand for goods and services.
6. Expectations: Consumer expectations about future price changes, income levels, or other factors can affect their current demand. If consumers anticipate an increase in prices in the future, they may choose to buy more of the product in the present, leading to an increase in demand.

Demand Function: A demand function expresses the relationship between the quantity demanded of a good or service and the various factors that determine demand. It is typically represented mathematically as:

Qd = f(P, Y, Pr, T, E, …)

Where: Qd = Quantity demanded P = Price of the product Y = Consumer income Pr = Price of related goods T = Consumer tastes and preferences E = Expectations

The demand function helps economists and analysts quantify the impact of changes in the determinants of demand on the quantity demanded. By estimating the coefficients of the demand function, economists can assess the responsiveness of demand to changes in these factors.

Demand Schedule: A demand schedule is a table that shows the quantity of a good or service that consumers are willing and able to buy at different price levels, holding other factors constant. It presents the relationship between price and quantity demanded in a tabular format.

The demand schedule demonstrates the inverse relationship between price and quantity demanded. As the price decreases, the quantity demanded increases, and vice versa.

Demand schedules are used to create demand curves and analyze the responsiveness of demand to price changes. They serve as a basis for understanding market demand patterns and making pricing decisions.

By considering the determinants of demand, using demand functions, and analyzing demand schedules, economists and managers can gain insights into consumer behavior, predict demand trends, and make informed business decisions.