Quality Vs Demand

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QUESTION:
Can better quality actually decrease demand? Discuss.
ANSWER:


I disagree with above statement, better quality always increases demand. As the quality increases, price of that good also increases and automatically the demand of that good also increases. Change in price will directly affect the quality as well. If it is decided that we can increase our market and sustain the increased price by increasing demand, then it is ok, otherwise, either quality is to be compromised or multi models may have to be introduced, like one high quality model with increased price, and one with lower quality but better price, Thus, the quality of the product depends on the price of the product. Normally a rise in price of the product is expected to affect its demand negatively and thus lead to a decline in demand, while a fall in price is expected to lead to a rise in the demand. Quality is normally not likely to be affected: except in the following way: a rise in price may lead some consumers to shift demand from high priced higher quality products to close substitute, cheaper quality products, while a fall in prices may move some consumers to shift to higher priced better quality products. For example, a rise in prices of gasoline may force some auto owners to shift from prime quality to ordinary grade. On the other hand the concept of demand means a necessity, want or desire to have any goods, supported by the amount of money which is needed to purchase it. In economics, the demand is always based on the willingness and ability to pay, not only on the necessity of goods. Consumers in the market get satisfaction with better quality and reasonable price, hence it causes demand of that product (Gulnara, I. N., Yulia & Marat, 2014). For example, the consumption of apple products is more in developing and developed countries because it has better quality and demand. In developing countries, most of the consumers look for better quality of life, food, clothes,...
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