shifts in demand

Question 1

what is the effect of a change in price of a good and a change in any other factor on the demand curve?

Answer 1

when the price changes, there is a movement ALONG THE ORIGINAL demand curve (contraction or expansion) but when any other factor changes, there is A COMPLETE SHIFT OF THE ORIGINAL curve (rightward or leftward entirely but parallel to the original). IF THE PRICE OF THE PRODUCT IS CHANGING, THE MOVEMENT IS ALONG THE DEMAND CURVE, IF THE PRICE OF THE PRODUCT IS CONSTANT AND OTHER FACTORS ARE CHANGING THEN THERE IS A SHIFT.

Question 2

what are the 9 factors that may cause a shift in the demand curve?

Answer 2

1. Consumer income (normal goods and inferior goods). 2. Brand loyalty 3. derived demand(sugar for chocolate) 4. price of compliments 5. natural factors 6. prices of substitutes 7.trends 8. expectations and speculation 9. impacts of advertising