ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Other things that change demand include tastes and preferences, the composition or size of the population, the prices of related goods, and even expectations. A change in any one of the underlying factors that determine what quantity people are willing to buy at a given price will cause a shift in demand.

Detailed explanation-2: -Thus, changes in non-price factors shift the demand curve and change the quantity for any given price combination. When quantity increases, for example, due to an increase in income, the curve shifts to the right, showing more demand for each price combination.

Detailed explanation-3: -Consequently, a positive change in demand amid constant supply shifts the demand curve to the right, the result being an increase in price and quantity. Alternatively, a negative change in demand shifts the curve left, leading price and quantity to both fall.

Detailed explanation-4: -The demand for a good increases or decreases depending on several factors. This includes the product’s price, perceived quality, advertising spend, consumer income, consumer confidence, and changes in taste and fashion.

Detailed explanation-5: -expected price (Pe) price of other goods (Pog) income (I or Y) (In Macroeconomics “I” usually stands for “investment” and “Y” stands for “income".) number of POTENTIAL consumers (Npot), and. tastes and preferences (T).