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The Law of Demand

Demand Factors

Factors which may lead to an increase in demand
  • A fall in the cash rate as set by the Reserve Bank of Australia
  • An increase in wages paid to Australian workers
  • Strengthening economic conditions amongst our trading partners
  • A fall in the value of the Australian dollar, which increases our exports
  • An improvement in the rate of confidence by either businesses or consumers

Factors which may lead to a decrease in demand
  • An increase in the cash rate
  • A decrease in the wages paid to Australian workers
  • When our trading partners move into recession
  • Any increase in the value of the Australian dollar
  • A fall in the confidence levels felt by either businesses or consumers

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