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Ask a question to our educatorsWhat is household demand and non household demand?
Household spending is the most important part of aggregate demand. It can be broken down into a number of categories, covering major spending items such as transport, food, fuel, holidays, and clothing. The Five Determinants of Household Demand are as follows: 1. The price of the good or service. 2. The income of buyers. 3. The prices of related goods or services either complementary and purchased along with a particular item, or substitutes and bought instead of a product. 4. The tastes or preferences of consumers will drive demand. 5. Consumer expectations. Most often, this refers to whether a consumer believes prices for the product will rise or fall in the future.
