Components of demand are essential pieces of the overall demand for a product or service. They include price, competition, product availability, and consumer preferences. Price is essentially how much of an item people will be willing to pay, which can be affected by the cost of production, competitor prices, and other variables. Competition is any measure of how your product compares and competes with similar offerings from other businesses. Product availability has to do with how easily a customer can find and access your product, such as through online stores or local retailers. Finally, consumer preferences provide invaluable insight into what types of products people want and why they’re looking for them. Collectively, these components provide an in-depth look at how demand works on both a macro and micro level.