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Markets are made up of sellers and buyers. Sellers have a supply of goods, and buyers have a supply of money. If the price is right, a seller and a buyer agree to make a trade. The amount of buyer interest that exists at a specific price level is called the demand.
Before this question can be answered, one must first make the distinction between demand and quantity demanded. Quantity demanded is determined by price: if the price is high, â¦ people will not not demand very much of the good, but if the price is low, people will demand more of the good.Demand, on the other hand, is a shift in quantity demanded at all prices.he second factor is expectations: if people expect the price of a good to go up tomorrow, then people will demand more of the good today. The third factor is the prices of related goods (substitutes and complements): if the price of hot dogs goes up, demand for hamburgers (a substitute) might increase.