Published by: Zaya
Published date: 15 Jun 2021
The factor causing the shift in demand is given in the table below:
|
Description |
Rightward shift in Demand Curve |
Leftward shift in Demand Curve |
|
Change in income A. Normal goods. B. Inferior goods |
Increase in income, Increase in demand. Decrease in income, Increase in demand. |
Decrease in income, Decrease in demand. Increase in income, Decrease in demand. |
|
Change in the price of related goods. |
A rise in the price of Y goods, rise in the demand for X goods |
Fall in the price of Y goods, fall in the demand for X goods |
|
Substitutes complements |
Fall in the price of Y goods, rise in the demand for X goods |
Rise in the price of Y goods, fall in the demand for X goods |
|
Change in advertisement expenditure |
Rise in advertisement expenditure, rise in demand |
Fall in advertisement expenditure, fall in demand |
|
Change in the tax rate |
Fall in tax rate Rise in demand |
A rise in tax rate Fall in demand |
|
Change in the size of the population |
Rise in the population Rise in demand |
Fall in the population Fall in demand |
|
Change in fashion |
Goods are in fashion Rise in demand |
Goods are in out fashion Fall in demand |