Shifting Demand
Here are some things that would cause the demand curve to shift:1. A change in income for the average consumer.
- If an increase in income causes an increase in the demand for a particular good, that good is called a "normal" good. Example: steak.
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If an increase in income causes a decrease in the demand for a particular good, that good is called an "inferior" good. Example: red beans.
2. A change in the population.
3. Changes in the prices of other goods.
- Complements.
- Substitutes.
4. Changes in consumer tastes.
Increasing Supply
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