Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / What makes a shift on a demand curve? What makes it shift right or left?

What makes a shift on a demand curve? What makes it shift right or left?

Economics

What makes a shift on a demand curve? What makes it shift right or left?

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Since the demand function shows a relationship between the quantity demanded and the price, then a change in the price will be represented by a movement along the demand curve. Any other factor that influences the consumer's purchasing decisions, other than the own price, will shift the demand curve to the left or to the right.

 

Factors causing the demand curve to shift to the right (increase in demand)

  • Increase in the price of a substitute good
  • Increase in the consumer's income
  • Increase in population
  • A decrease in the price of a complement good

Factors causing the demand curve to shift to the left (decrease in demand)

  • Decrease in the price of a substitute good
  • Decrease in the consumer's income
  • Decrease in population
  • An increase in the price of a complement good