Three factors that affect demand of a commodity
1) Price of the commodity: The most significant factor that affects the demand of a commodity is its price. Generally, as the price of a commodity increases, the demand for it decreases. Conversely, as the price decreases, the demand increases. This relationship is known as the law of demand.
2) Income of consumers: The income of consumers plays a crucial role in determining the demand of a commodity. If consumers' income increases, they are more likely to purchase more of the commodity. On the other hand, if their income decreases or remains stagnant, their ability to afford the commodity may be reduced, leading to a decrease in demand.
3) Availability of substitute goods: The availability and price of substitute goods can affect the demand for a commodity. If there are close substitutes available at a lower price, consumers may switch their preferences, leading to a decrease in demand for the original commodity. Conversely, if there are no close substitutes available or they are priced higher, the demand for the commodity may increase.