ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The curve shifts to the right if the determinant causes demand to increase. This means more of the good or service are demanded even though there’s no change in price. When the economy is booming, buyers’ incomes will rise.

Detailed explanation-2: -Increased demand means that at every given price, the quantity demanded is higher, so that the demand curve shifts to the right from D0 to D1. Decreased demand means that at every given price, the quantity demanded is lower, so that the demand curve shifts to the left from D0 to D2.

Detailed explanation-3: -To sum up, if the income level of a population increases, the demand curve will shift to the right, since there is more quantity of demand at every price point. The opposite will happen if the income level drops. Now there will be less money to spend, and the demand curve will shift to the left.

Detailed explanation-4: -An increase in demand, all other things unchanged, will cause the equilibrium price to rise; quantity supplied will increase. A decrease in demand will cause the equilibrium price to fall; quantity supplied will decrease.

Detailed explanation-5: -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. Demand curves relate the prices and quantities demanded assuming no other factors change.