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Demand expands or contracts due to:

O Changes in consumers income
O Changes in prices of related goods
O Changes in taste and fashion
O Changes in price of the same commodity

User Riorio
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Final answer:

Demand expands or contracts due to changes in consumers' income, changes in prices of related goods, changes in taste and fashion, and changes in the price of the same commodity.

Step-by-step explanation:

Other factors that affect demand include changes in consumers' income, changes in prices of related goods, changes in taste and fashion, and changes in the price of the same commodity.

When consumers' income increases, their purchasing power goes up, leading to an expansion in demand. Conversely, if income decreases, demand contracts.

Changes in prices of related goods also impact demand. For example, if the price of a complement good (such as golf balls for golf clubs) increases, the demand for the main good (golf clubs) decreases. Similarly, if the price of a substitute good (such as coffee) increases, the demand for the main good (coffee) increases as consumers switch to the more affordable option.

Changes in taste and fashion can also cause shifts in demand. If a certain style or trend becomes popular, the demand for related products increases. On the other hand, if a product goes out of style, the demand for it decreases.

Lastly, changes in the price of the same commodity can affect demand. If the price of a good increases, demand tends to decrease as consumers are less willing to purchase it at higher prices.

User Alec Mev
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