Consumer Demand for Product

The theory of the consumer demand for product states that there is an indirect relationship between the consumer demand for goods and services, and their price. Consumers base their demand on the utility derived from the consumption of a product. The demand theory is the basis of the demand curve which is a negatively sloping curve. This indicates that an increase in the demand of a stated product produces a decrease in its price. There are different determinants of demand in any consumption curve. They include customer preferences, their consumption patterns and the level of satisfaction they are willing to derive from the stated goods and services (Gwartney, Stroup, Sobell and Macpherson, 2011).

As the price of stated good declines, consumers are inclined to consume more of that product. As the price increases, their consumption consequently decreases. There are, however, a number of assumptions pertaining to this theory. One of the most prevalent assumption is that consumers prefer to have more of a certain good as opposed to less of it. The elasticity of demand is the extent to which a consumer alters the demand they have for a particular product relative to its price change. If the consumer’s demand for a good changes drastically relatively to a small change in its price, then the product is highly elastic. If the change in price causes no change in demand, then the demand is elastic (Sprinfield, and Russel, 2004). The demand for basic commodities such as groceries depends on their price. It the price rises, there will be less demand, but if it declines, demand increases.

According to Christians, man was placed on earth to have all the goods and services they desire. However, the holy books rebuke gluttony and state that an individual should only have as much as they need. They ought not to have more than they can handle. It is against the rules of Christianity to desire more than one can handle.

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