MICROECONOMIC

The law of demand

The law of demand states that the higher the price the lower the demand and the lower the price the higher the demand . This law has a lot of influence in our daily lives , for example , sugar is one of the commodities , that is commonly used by majority of the people living in the world today . Although the commodity is vital to many of the members in our society , its changes in pricing may affect the demand thus creating an impact to the potential consumers as well as to

the sellers (Nyaga , 2

Some factors that may result to the fall in demand of sugar may be as a result of the changes in the price of sugar . The changes in price of sugar may result in low demand since the price might be so high . This means that some of the low-income earners besides being classified under the category of potential customers might find themselves not meeting the price expectations . They will thus not fit in the category of potential purchasers of sugar .Due to this reason those who cannot meet the price expectation of this particular product might be forced to change the consumption of the commodity and turn to consumption of another product (Nyaga , 4

The other factor that leads to the fall in the demand of this vital commodity is consumers ' level of income . This is because the increase in the price of sugar will be directly proportional to the income of consumers given that it (consumers ' income ) remains constant . If a certain number of consumers who wish to use the product have low income they may not have a chance of meeting the price of sugar thus the demand will automatically fall because the consumers who require the product will decrease because of disqualification of those under the low-income consumers

Another effect may be because of changes in the population in the area The number of people living in a particular region affects the demand of sugar simply because when the residents are sparsely populated the level of demand of sugar will be affected thus the price will decrease as traders try to make something out of their business . In addition , the population may affect the demand of sugar due to some of the factors like gender and age . Many of the people may decide to use other products , which may result to less consumption of sugar . They may decide to use honey or other products that may supplement sugar consumption This will in turn mean reduced demand for sugar and reduction in its price

The demand of sugar in a particular region may be as a result of seasonal and climatic changes simply because in cold weather many of the consumers may be forced to use more of this product to avoid the effects of cold weather on human beings . This will automatically increase the demand of sugar because the potential consumers or users will buy it in large quantities...