Factor Causing the shift in Demand

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Factor Causing the shift in Demand

Published by: Zaya

Published date: 15 Jun 2021

Factor Causing the shift in Demand Photo

Factor Causing the shift in Demand

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