Question

When would a demand curve shift:(a) rightwards,(b) leftwards ​

Answer 1

In addition to the factors which can affect individual demand there are three factors that can cause the market demand curve to shift: a change in the number of consumers, a change in the distribution of tastes among consumers, a change in the distribution of income among consumers with different tastes.

a)

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.

b)

The curve shifts to the left if the determinant causes demand to drop. That means less of the good or service is demanded at every price. That happens during a recession when buyers' incomes drop.