What are the determinants of Demand? What is the effect of a change in the determinants of demand?

The determinants of demand are the factors that affect the quantity of a product that is demanded (by consumers) at every given price level. The main determinants of demand include: Income level, Consumer Preferences, Price of Related goods and Expectation of Future Price. Price is not a determinant of demand as it leads to a change in quantity demanded not demand (at every price level).

Changes in the determinants of demand lead to shifts in the demand curve (where quantity is on the y-axis and price is on the x-axis). The result is a change the quantity bought and sold in a given market (say, the market for apples) and a change in the price of the good (such as apples). The constantly changing determinants of demand partly explain why prices change so frequently.