When and why does the demand curve shift to rightward direction?
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Increases in demand are shown by a shift to the right in the demand curve. This could be caused by a number of factors, including a rise in income, a rise in the price of a substitute or a fall in the price of a complement.
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In Microeconomics,demand curve shifts rightward because of increase in overall demand for any good or service due to non-price factors or attributes.
Explanation:
- An increase in the overall market demand for any particular product or service is illustrated by the rightward or upward shift of the demand curve for that good or service in the market.
- An increase in overall demand for any good or service or the rightward shift of the demand curve of that good or service can be caused by various non-price related factors or determinants.
- Some of the non-price related causes behind the rightward or upward shift of the demand curve of any product or service commonly include increase in consumer or buyer income,a favorable shift of conumer/buyer taste and preference towards the concerned product or service,future expectation of the concerned product/service price to rise,sudden increase in the price of substitute products or fall in price of complement goods.
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