Factors That May Shift The Demand Curve Flashcards

1
Q

6 factors that causes the shifts in demand curve

A
  1. Advertising
  2. Income
  3. Fasion and taste (Changing demand patterns)
  4. Price of substitutes
  5. Price of complements
  6. Demographic changes
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2
Q

Tell how a demand curve shift according to advertising

A

If the advertising increases or succeeded => demand increases (Curve shifts right)
If the advertising decreases or reduced => demand decreases (Curve shifts left)

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3
Q

Tell how a demand curve shift according to Income (Normal goods)

A

If income increases => demand increases (Curve shifts right)
If income decreases => demand decreases (Curve shifts left)

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4
Q

Tell how a demand curve shift according to Income (Inferior goods)

A

If income increases => demand decreases (Curve shifts left)
If income decreases => demand increases (Curve shifts right)

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5
Q

Tell how a demand curve shift according to fashion and taste

A

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If the product is outdated or no longer fasionable =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)

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6
Q

Tell how a demand curve shift according to price of substitutes

A

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)

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7
Q

Tell how a demand curve shift according to price of complements

A

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)

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8
Q

Tell how demographic changes affect a demand curve

A

If the population size increases => demand will increase (Curve shifts right)
If the population size decreases => demand will decrease (Curve shifts left)

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