Examples - Market Demand Shift Right

Question 1

Demand for Non- dairy/ non alcoholic drinks

Answer 1

Has seen rapid growth with new health trends
Towards veganism and cutting back on unhealthy dietary inclusions

Question 2

Demand for electric cars and bicycles

Answer 2

Demand has risen
Given the government push towards replacing fossil fuelled powered cars with more environmentally friendly alternatives and due to the rising price of fuel, increasing the price of a substitute

Question 3

Demand for UK housing

Answer 3

Continues to increase in 2022 due to low interest rates on mortgages and government support schemes such as stamp duty exemptions and the help to buy scheme for first times buyers
- the signalling, incentive and rationing functions of the price mechanism have acted as a higher demand with price inelastic supply forces the 2022 average UK house price by 10% to £296,000
Increased demand for rented accommodation as a substitute

Higher interest rates, recession and lower disposable incomes will see this trend revers in 2023

Question 4

Demand for solar panels and wood burners

Answer 4

Have surged in the last year as consumers seek out alternative sources of electricity and ways to heat their homes to combat soaring electricity and gas prices; a demand rise due to substantial increases in substitute prices