What are some causes for a change in demand?

Answer 1

One of the causes of change in demand is increase in income.

Another would be the limit of the supply of product or service while the number of people vying for the ability to use the product or service has increased or decreased substantially.

What really happens is that when a limited supplycannot meet the demand of those seeking the product or service the price increases until demand begins to subside. The reverse could also be true. . . that either alternative products or services interrupt the demand and lessen its value due to a glut or overabundance compared to the number of buyers.

Buyers priorities may change to increased or decreased priority with factors like a company having to many loans, which then may decide to cut back on expenses or entirely change the direction or mode that used the item they were buying. If a product or service becomes a want rather than a need it drops down the priority list and may not be utilized until economic restrictions change for better or worse.

Demand plummets or increases with internal/external economic or scientific change. If an item pollutes or has a buy product of its use or manufacturing which cause social economic problems such as pollution then government may set limits on usage or tax it or levy fines based upon the seriousness of the problem.

Today we look for products or services which aid in the keeping of our air and water to be clean. The recognition or ability to effectively advertise these products or services helps to determine the demand based upon their acceptance or rejection.