ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -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-3: -If a decrease in income causes an individual’s demand curve for a good to shift to the left, then the good is inferior. If a good is normal, then both the substitution effect and the income effect cause quantity demanded to change in the same direction.

Detailed explanation-4: -If the price goes up, the quantity demanded goes down (but demand itself stays the same). If the price decreases, quantity demanded increases. This is the Law of Demand. On a graph, an inverse relationship is represented by a downward sloping line from left to right.