Table of Contents
Change in Demand Or Shift in Demand curve
Change in Demand
Or
Shift in Demand curve
Change in Demand refers to the demand for commodity changes due to changes in any factors other than the own price of the commodity.
A change in demand refers to a shift in the entire demand curve.
In this case, the entire demand curve moves left or right.
Reasons for Shift in Demand curve
1. Change in Income of the consumers
2. Change in Price of Substitute goods
3. Change in Price of Complementary goods
4. Change in Taste and Preference;
5. The expectation of change in Future prices
6. Change in Population
7. Change in Distribution of Income
8. Change in season and weather
9. Change in Government Policy
Change in Demand Or Shift in Demand curve
Increase in Demand
Increase in Demand refers to the quantity of a commodity rises due to changes in any factors other than own price of the commodity.
Favourable change in other factors at the same price
In this case, the demand curve shifts rightward.
For Example:
Reasons for Rightward Shift demand curve-
1. Increase in Income
2. Increase in Price of Substitutes
3. Decrease in Price of Complementary
4. Favourable (Increase) Change in Taste and Preference;
5. Expectations to Rise in Price in Future
6. Favourable Change in Population
7. Favourable Change in Distribution of Income
Change in Demand Or Shift in Demand curve
Decrease in Demand
Decrease in Demand refers to the quantity of a commodity falls due to changes in any factors other than own price of the commodity.
Unfavourable change in other factors at the same price.
In this case, the demand curve shifts leftward.
For Example:
Reasons for Leftward Shift demand curve–
1. Decrease in Income
2. Decrease in Price of Substitutes
3. Increase in Price of Complementary
4. Unfavourable (Decrease) Change in Taste and Preference;
5. Expectations to Fall in Price in Future
6. Unfavourable Change in Population
7. Unfavourable Change in Distribution of Income
Change in Demand Or Shift in Demand curve
FACTORS AFFECTING DEMAND OR DETERMINANTS OF DEMAND
LAW OF DEMAND AND ASSUMPTIONS OF THE LAW OF DEMAND
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