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Several determinants of demand besides price

Illustrate the several determinants of demand besides price which affect demand?

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Changes in determinants cause changes in demand. There are several determinants of demand besides price which affect demand are:-

a. Tastes—-favorable change leads to increase in demand; unfavorable change to decrease.

b. Number of buyers—the more buyers lead to an increase in demand; fewer buyers lead to decrease.

c. Income—more leads to increase in demand; less leads to decrease in demand for normal goods.  (The rare case of goods whose demand varies inversely with income is called inferior goods).

d. Prices of related goods also affect demand.

i. Substitute goods (those that can be used in place of each other): The price of the substitute good and demand for the other good are directly related.  If price of Budweiser rises, demand for Miller should increase.

ii. Complementary goods (those that are used together like tennis balls and rackets): there is an opposite relationship among price of one and demand for other when goods are complements.

e. Expectations—consumer views about future prices, product availability, and income can shift demand.

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