When would a demand curve shift:(a) rightwards,(b) leftwards

1.	When would a demand curve shift:(a) rightwards,(b) leftwards
Answer» In addition to the FACTORS which can affect individual demand there are three factors that can cause the market demand curve to shift: a change in the number of consumers, a change in the distribution of tastes AMONG consumers, a change in the distribution of income among consumers with different tastes. a) Increases in demand are shown by a shift to the right in the demand curve. This COULD be caused by a number of factors, including a rise in income, a rise in the price of a substitute or a fall in the price of a complement. b) The curve SHIFTS to the left if the determinant causes demand to drop. That means less of the good or service is demanded at every price. That happens during a RECESSION when buyers' incomes drop.

Answer»

In addition to the FACTORS which can affect individual demand there are three factors that can cause the market demand curve to shift: a change in the number of consumers, a change in the distribution of tastes AMONG consumers, a change in the distribution of income among consumers with different tastes.

Increases in demand are shown by a shift to the right in the demand curve. This COULD be caused by a number of factors, including a rise in income, a rise in the price of a substitute or a fall in the price of a complement.

The curve SHIFTS to the left if the determinant causes demand to drop. That means less of the good or service is demanded at every price. That happens during a RECESSION when buyers' incomes drop.

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