ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Changes in factors like average income and preferences can cause an entire demand curve to shift right or left. This causes a higher or lower quantity to be demanded at a given price. Ceteris paribus assumption.

Detailed explanation-2: -Changes in demand determinants will shift the Demand Curve. EXAMPLE: If Consumer Income increases (people have more money), then Demand will increase (people have more money and willing to spend more/buy more products). Changes in supply determinants will shift the Supply Curve.

Detailed explanation-3: -The demand curve shifts to the left if the determinant causes demand to drop. That means less of the good or service is demanded. That happens during a recession when buyers’ incomes drop. They will buy less of everything, even though the price is the same.

Detailed explanation-4: -The demand curve shifts when the quantity of a product or service demanded at each price level changes. If the quantity demanded at each price level increases, the demand curve shifts rightward. Inversely, if the quantity demanded at each price level decreases, the demand curve will shift leftward.

Detailed explanation-5: -Increases in demand are shown by a shift to the right in the demand curve. This could be caused by a number of factors, including a rise in income, a rise in the price of a substitute or a fall in the price of a complement.