Population size and composition
Also called: demographic composition · Topic: Consumer Behaviour, Demand and Elasticity · NCERT: Class 9, Ch 9 "The Price Puzzle: What Drives the Market"
Meaning
Population size and composition is a determinant of demand. Size is how many people there are. Composition is the population's make-up, such as its age structure. A larger population, or more buyers in a market, shifts the market demand curve right even if each person's demand does not change. The age mix decides what kind of goods are in demand.
Example
India is the most populous nation, so a large share of its growth comes from domestic demand. More children means more demand for sports shoes. More working adults means more formal shoes. More elderly people means more orthopaedic or comfort shoes.
Don't confuse with
- Consumer income: this changes how much each person can spend. Population changes how many people are spending and what they need.
Related concepts
- Determinants of demand
- Related goods
- Substitute goods
- Complementary goods
- Consumer income
- Purchasing power
- Future price expectations
- Shift in demand curve
- Movement along the demand curve