Factors that cause a Change in Demand:

A change in demand is caused by a change in any of the following factors:

• Prices of related goods (substitutes and complements)

• Consumer's income (inferior and normal goods).

• Consumer tastes or preferences

• Consumer expectations (of changes in prices and income)

• Population of consumers

• Marketing strategies

• Natural factors

• Availability of credits

• Cost of borrowing (interest rate)

The explanations of how a change in any of the above factors causes a change in demand are given in the same ways as we did under determinants of demand for a commodity.  But note that a change in the own price of a commodity does not cause a change in demand, it causes only a change in quantity demanded.