What refers to a change in demand due to external factors?

The term that refers to a change in demand due to external factors is accurately identified as a demand curve shift. This concept indicates that when external factors such as consumer income levels, preferences, prices of related goods, or changes in the number of buyers change, the entire demand curve will shift either to the right (increase in demand) or to the left (decrease in demand).

This shift is different from a movement along the demand curve, which occurs only as a result of a change in the price of the good itself, reflecting the law of demand—where quantity demanded increases as price falls and vice versa. Supply elasticity relates to how responsive the quantity supplied is to a change in price, and market demand refers to the total demand of all consumers for a particular good or service.

Thus, recognizing a demand curve shift as a response to external factors is a key concept in understanding how market demand responds to changes outside of simple price fluctuations.