ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -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.

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: -However, a shift in the demand curve happens when the price of coffee stays the same, and yet the quantity of demand changes. For example, if the price of coffee is still $2.00 but there is a change in the quantity of demand for coffee at the shop, that would be a shift in the demand curve.