(a)Demand refers to the quantity of a commodity that consumers are willing and able to buy/pay for, at a given price in a market at a particular time.

 

(b)Response:

1. The law of demand states that the higher the price, the smaller

the quantity of that product that would be bought while the lower the
price, the higher the quantity of the product that would be bought.

 

(c)Factors that would influence the demand for a product.

1. Price of a product
2. Income level
3. Consumer tastes and preferences
4. Competition
5. Fashion
6. Promotion
7. Seasons/weather conditions
8. Population size
9. Government policies
10. Expectation of future rise in product price

 

                          Explanations

1. Price of a product: When price of goods increases, the demand falls and when it decreases, the demand increases.                  
2. Income levels: When the income of consumer increases, his demand for goods would increases and vice versa.
3. Consumer tastes and preferences: Changing tastes and preferences of a consumer would have significant effect on his demand for goods.
4. Competition: Changes in the price of substitute goods, would affect the demand for it.
5. Fashion: When goods become unfashionable, demand could easily decrease.
6. Promotion: Advertising and sales promotion would lead to changes in demand for goods.
7. Seasons/weather conditions: Goods that are seasonal in nature and purchased in certain weather condition enjoy favourable demand at the appropriate time.
8. Population size: Growth in population would lead to increase in demand for goods.
9. Government policies: Government policies could affect the demand for goods.
10. Expectation of future rise in price of goods:   The expectation of consumers about future rise in the price of goods could affect its demand.                    

            Comments

This was a simple question that students with good knowledge of economics should have been able to attempt quite well. Those who attempted these questions did very well.