Economics - Shifts in the Demand Curve
Shifts in the Demand Curve
Sometimes certain factors influence consumers to change their demand for a
product at a particular price. Demand will either increase (meaning a shift
to the right of the entire demand curve) or decrease (the demand curve
shifts to the left). The factors that can change demand include:
* A change in consumer preferences. Some goods become fashionalble while
others become unpopular.
* A change in disposable income. A change in wages or income tax rates
will change the amount of money consumers have to spend and demand.
* A change in the price of a substitute. The demand for a product will
rise, for example, if the price of its substitute goes up.
* A change in the price of a complement. If the price of Sony
Playstations falls for example, the demand for Playstation games will
increase along with the demand for the Sony Playstations.
* The size of the population. Immigration and natural population increase
will increase demand for certain goods and services.
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