Shift in Demand Curve
The shift in demand curve is caused by change in a non-price factors, keeping the price factor as constanty (at the same price.)It refers to the change in quantity demanded for a commodity due to the change in a factor otherShift in Demand than its price. In this case, demand curve changes its position i.e. new demand curve is drawn.
Types of Shift in Demand
There are two types of shift in demand curve:-
I ) Rightward Shifts in Demand Curve :
It refers to the increase in quantity demanded for a commodity at the same price. This is because of the change in a non-price factors like income of the consumer. It can be explained by the following figure .
The above figure shows that, at the constant price P. quantity demanded increases from Q1 to Q2 due to the increase in a non - price factor like income of the consumer .
II) Leftward Shift in Demand Curve :
It refers to the decrease in quantity demanded for a commodity due to change in a non-price factor like decrease in income of consumer, price remaining the constant. This can be explained by the following figure:-
The above figure shows that the quantity demanded for the commodity decreases from Q2 to Q1, this is non- price factor like consumer. So that, the original demand curve DD shifts to leftward from its original position.
Chapter 2 Part 8
