What factors, other than price, influence demand?
There are a number of factors that affect demand. They are: (please note that all of these impacts are "all other things being equal")
- Consumer income. The more money people make, the higher the demand for any given items.
- Consumer tastes. People will want more or less of a given item at a given price depending on tastes. For example, if "Aeropostale" happens to be in style, there will be more demand for it.
- Cost of competing goods. If the price of Pepsi goes up, the demand for Coke goes up because they are competitors.
- Cost of complementary goods. If the price of DVD players goes down, the demand for DVDs goes up because they are used together.
Other than price there are other factors that affect demand as:-
As changes in disposable income but it depends on a products positive (normal goods) and negative relationship (inferior goods)between income and demand.
Changes in prices of substitutes and complementary goods
How successful advertising campaigns were.
changes in the population as high population would mean more products are needed for consumption amd therefore increase aggregate demend (total demand)
Changes in taste and fashions
Changes in weather conditions
Expectations about future prices
Interest rates and credit conditions
Changes in taxes on income