Factors affecting Demand

Demand is defined as the willingness and ability of a consumer to purchase a particular good or service at a given point in time. There are various factors that can affect the demand for a particular good or service, some of which are discussed below:

1. Price

The relationship between price and demand is inverse, which means that as the price of a good or service increases, the demand for it decreases, and vice versa. This is known as the law of demand. Therefore, a decline in the market price of a good or service will result in an increase in demand.

2. Income

The income of a consumer is another important factor that affects the demand for a good or service. As the income of a consumer increases, their purchasing power also increases, which leads to an increase in demand for goods and services. Conversely, a decrease in income will result in a decrease in demand.

3. Price of Substitutes

Substitutes are goods or services that can be used in place of another. As the price of a substitute decreases, the demand for the original good or service decreases, and vice versa. Therefore, a reduction in the price of substitutes will result in an increase in demand for the original product.

4. Price of Complements

Complements are goods or services that are used together. As the price of a complement increases, the demand for the original good or service decreases, and vice versa. Therefore, an increase in the price of complements will result in a decrease in demand for the original product.

Conclusion

Out of the given options, an increase in income is the only factor that will result in an increase in demand. While the other factors can also affect demand, they do not necessarily lead to an increase in demand.

D is correct answer i don't think that A is right because increase in demand leads to increase in price not decrease in price.