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: -A shift in the demand curve shows changes in demand at each potential price due to changes in one or more non-price factors like the price of comparable commodities, income, taste and preferences, and consumer expectations. If there is a shift in the demand curve, the equilibrium point also shifts.

Detailed explanation-4: -Since coffee and tea are substitute goods, the decrease in the price of coffee will make it more lucrative for the consumers to buy coffee, such that the consumers will substitute tea for buying more units of coffee. This will reduce the demand for tea, causing the demand curve of tea will shift to the left.