Three factors which determine demand are as follows :
(1) Price of the commodity : An increase in the price level reduces the purchasing power of consumers and the demand will be less. A fall in the price level increases the purchasing power of the consumers and the demand will be more.
(2) Population : An increase in population of a region will result in an increased demand of various goods. Also, the composition of population determines the demand of certain goods proportionately. For example, an increased number of females in the region will generate more demand for sarees, ornaments, etc.
(3) Pattern of income: With a rise in income, the purchasing power of people also increases which in turn encourages the people to demand more of luxuries and comforts.