Factors That May Shift The Demand Curve Flashcards
6 factors that causes the shifts in demand curve
- Advertising
- Income
- Fasion and taste (Changing demand patterns)
- Price of substitutes
- Price of complements
- Demographic changes
Tell how a demand curve shift according to advertising
If the advertising increases or succeeded => demand increases (Curve shifts right)
If the advertising decreases or reduced => demand decreases (Curve shifts left)
Tell how a demand curve shift according to Income (Normal goods)
If income increases => demand increases (Curve shifts right)
If income decreases => demand decreases (Curve shifts left)
Tell how a demand curve shift according to Income (Inferior goods)
If income increases => demand decreases (Curve shifts left)
If income decreases => demand increases (Curve shifts right)
Tell how a demand curve shift according to fashion and taste
If the product is trendy or suitable to fashion and taste => demand increases (Curve shifts right)
If the product is outdated or no longer fasionable => demand decreases (Curve shifts left)
Tell how a demand curve shift according to price of substitutes
If the substitute product’s price increases => demand to our product increases (Curve shifts right)
If the substitute product’s price is decreases => demand to our product decreases (Curve shifts left)
Tell how a demand curve shift according to price of complements
If the complementary goods price increases => our product’s demand decreases (Curve shifts left)
If the complementary goods price decreases => demand increases (Curve shifts right)
Tell how demographic changes affect a demand curve
If the population size increases => demand will increase (Curve shifts right)
If the population size decreases => demand will decrease (Curve shifts left)