9 Major Causes of an Increase in Demand for a Commodity

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So what are the major causes of an increase in demand for a commodity?

This brief tutorial will give you the points you need to answer this question in your school test, assignment/homework or final examination.

Causes of an Increase in Demand- WASSCE/SHS Economics Revision Notes

Note that an “increase in demand” falls under the topic “change in demand”. This is not the same as “increase in quantity demanded” which comes under “change in quantity demanded.”

So the price of the commodity in question is not a factor here.

  1. Positive change in taste and fashion
  2. Increase in disposable income
  3. Rise in the price of substitutes or fall in the price of a complement
  4. Expectation of future increase in price.
  5. Increase in disposable income.
  6. Favourable whether conditions or seasons.
  7. Increased availability of credit facilities.
  8. Increased advertisement or sales promotions
  9. Introduction of a favourable government policy

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