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In my application of theory I have spoken about certain things making demand rise
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A market is a meeting of buyers and sellers, where goods/services are exchanged for other goods and services. It is therefore a system of exchange based on demand, supply and price. The exchange is normally indirect, the items being exchanged for money. Therefore houses would be bought for money. This money can be used to buy more houses. Money acts as a medium of exchange and a measure of value. Demand is the amount of people willing to purchase a good or service at a given price. The fundamental law of demand is that an increase in price will result in a decrease in quantity demanded whereas a decrease in price will results in an increase in quantity demanded. I have shown this below using a demand curve. The graph shows that 30,000 items are demanded when the price is £10. If the price falls to £5 quantity demanded will increase to 40,000....
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