(a) Demand is the quantity of a good or service that consumers are willing and able to purchase at various prices over a given period, assuming other factors remain constant (ceteris paribus).

(b) Two factors that may promote increasing quantities of a product to be bought at each possible price are:

• An increase in consumer income, leading to higher purchasing power.
• Favorable changes in tastes and preferences toward the product.

(c) Taste and preference for a product refer to the subjective likes, dislikes, or inclinations of consumers toward a particular good or service, influenced by cultural, social, personal, or advertising factors, which affect the demand curve’s position.

(d) In unity price elasticity of demand (where elasticity = 1), price changes cause no effect on total revenue; it remains constant as the percentage change in quantity demanded exactly offsets the percentage change in price.

(e) Two reasons why you buy more quantities of a commodity when your income rises are:

• For normal goods, higher income increases purchasing power, allowing affordance of larger quantities.
• The income effect shifts the demand curve rightward, as the commodity becomes more desirable relative to inferior alternatives.

In Ghanaian banking, understanding demand elasticity aids in pricing financial products like loans; for instance, during economic growth post-2022 DDEP, banks like GCB adjusted interest rates on consumer loans, observing unitary elasticity where revenue stabilized despite rate changes.