A constrained factor of demand refers to a factor that limits or constraint the ability of consumers to purchase or demand a certain good or service. This can include factors such as limited income or budget constraints, high prices of the product, availability or accessibility constraints, or even cultural or social factors that may limit the demand for a particular product.
For example, if the price of a luxury handbag is very high, it may constrain the demand for the product as only a limited number of consumers may be able to afford it. Similarly, if a certain product is only available in limited locations or is not easily accessible to consumers, it may constrain the demand for that product.
Constrained factors of demand can have a significant impact on the overall demand and consumption patterns of various goods and services. Businesses often take these factors into consideration when setting prices, marketing strategies, or expanding their distribution channels to reach a wider consumer base.
Constrained factor of demand
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