What factors determine the demand for land

Household demand

Consumption

those types and quantities of goods that private households want to buy in accordance with their defined consumption plan (considerations on the origin and use of financial resources). The household's demand for goods and services depends on various circumstances, e.g. B. on the structure of needs, the benefit that the goods in demand create, the price of the goods in demand and the amount of money that the household has to buy goods (consumption). In economic theory, an optimal consumption plan (see there) is determined.

As a general rule, the relationship between the amount in demand by the household and the price of the goods in demand is that as the price of a good increases, the household usually purchases less of this good. On the other hand, if the price of a consumer good falls, the household will normally demand more of this good.

As for the context of Consumption and the amount of demand of the household, it can generally be assumed that with increasing consumption, the demand of the household will normally increase. If the household's income falls, demand will fall. However, the demand for individual goods does not always increase to the same extent; on the contrary, it can even decrease. According to Engel's law (see there), the household's demand for simple goods (e.g. for simple groceries) falls as income rises, while the demand for high-end goods (e.g. high-quality food and luxury goods) increases .

Duden Wirtschaft from A to Z: Basic knowledge for school and study, work and everyday life. 6th edition. Mannheim: Bibliographisches Institut 2016. Licensed edition Bonn: Federal Agency for Civic Education 2016.