Demand depends on price usually , Is there possibility demand depends on other factors , not on price? What is it called ?

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The relative response of a change in quantity demanded to a change in price. More specifically the price elasticity of demand is the percentage change in quantity demanded due to a percentage change in price. This notion of elasticity captures the demand side of the market. A comparable elasticity on the supply side is the price elasticity of supply. Other notable demand elasticities are income elasticity of demand and cross elasticity of demand.

Demand is influance by several factors ...

1.Income.

An increase in disposable income enabling consumers to be able to afford more goods. Higher income could  occur for a variety of reasons, such as higher wages and lower taxes.

2.Quality.

An increase in the quality of the good e.g. better quality digital cameras encourage people to buy one.

3.Advertising 

It can increase brand loyalty to the goods and increase demand. For example, higher spending on advertising by Coca Cola has increased global sales.

4.Substitutes.

An increase in the price of substitutes, e.g. if the price of Samsung mobile phones increases, this will increase the demand for Apple iPhones – a major substitute for the Samsung.

5.Complements. 

A fall in the price of complements will increase demand. E.g. a lower price of Play Station 2 will increase the demand for compatible Play Station games.

6.Weather

In cold weather there will be increased demand for fuel and warm weather clothes.

7.Expectations 

Expectations of future price increases. A commodity like gold may be bought due to speculative reasons; if you think it might go up in the future, you will buy now.

8.Tastes and Preferences of the Consumers:

An important factor which determines demand for a good is the tastes and preferences of the consumers for it. A good for which consumers’ tastes and preferences are greater, its demand would be large and its demand curve will lie at a higher level.

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