ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -One of the demand shifters is buyers’ expectations. If a buyer expects the price of a good to go down in the future, they hold off buying it today, so the demand for that good today decreases. On the other hand, if a buyer expects the price to go up in the future, the demand for the good today increases.

Detailed explanation-2: -An increase in the price of a product causes an increase in demand for substitute products and a decrease in demand for the product’s complements. Consumer expectations cause people to demand either more or less of a good. A change in the total number of consumers causes the entire demand curve to shift right or left.

Detailed explanation-3: -Expectations:-If consumers expect prices to increase in the future they increase their demand today. D curve shifts right.-If consumers expect their income to rise in the future, they increase their spending today, demand increases, D shifts right.

Detailed explanation-4: -While it is clear that the price of a good affects the quantity demanded, it is also true that expectations about the future price-or expectations about tastes and preferences, income, and so on-can affect demand.

Detailed explanation-5: -Factors that can shift the demand curve for goods and services, causing a different quantity to be demanded at any given price, include changes in tastes, population, income, prices of substitute or complement goods, and expectations about future conditions and prices.