Understanding Demand Curve Shifts

A shift in the demand curve occurs when something alters the quantity demanded at any given price.

An increase in demand refers to any change that increases the quantity demanded at every price, causing the demand curve to shift to the right.

A decrease in demand refers to any change that reduces the quantity demanded at every price, causing the demand curve to shift to the left.

<p>Two variables that can cause the demand curve to shift are income and the price of related goods.</p> Signup and view all the answers

<p>In most cases, demand falls when income falls (for normal goods), but for some goods (like public transport or fast food), demand increases when income falls (for inferior goods).</p> Signup and view all the answers