Question

State the factors that can cause rightward shift of demand curve of a commodit

Answer 1

1) Decrease in own price of the commodity.

2) Taste of the consumer will be increase.

3) Expectation of consumer will be increase.

4) Income of the consumer increase.

Answer 2

Consider first a rightward shift in Demand. This could be caused by many things: an increase in income, higher price of a substitute good, lower price of a complement good, etc. Such a shift will tend to have two effects: raising equilibrium price, and raising equilibrium quantity.