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Describe five factors that influence the demand of agricultural products.

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  1. Price of related goods: demand of commodity increase with an increase in the price of a substitute
  2. Population: the higher the population the higher the demand.
  3. Income: income determine the purchasing power of buyers thus demand increases
  4. Preferences and faster: consumers will buy more for what they liked/ preferred and low demand for what is substituted for.
  5. Price expectation: demand for a certain good goes up if its price is expected to go up in future.
  6. Advertisement: create awareness / increase sales hence increase in demand.
  7. Belief, customs and taboos : -may forbid consumption of certain items e.g. fork for Muslims.
  8. Level of taxation: highly taxed goods have price resulting to low demand.
  9. Future expectation: fear of future shortage increase of commodities.
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