Movement and Shift in Demand 

      MOVEMENT & SHIFT IN DEMAND CURVE                                                                


               The change in quantity demanded due o the change in price, where other non-price factor remaining the same/constant. The movement always takes place in same demand curve leftward or rightward. The rightward movement is expansion and leftward movement is contraction of demand. Here, the demanded quantity is only determined by the price. The following figure shows the movement of demand.



               The change in position of demand curve due to the change in non-price factors(income, season, culture, price expectation etc.), where the price remaining the same, is shift in demand. Here, price remains constant and demand demand curve changes it’s position leftward or rightward and forms different demand curves. The leftward shift in demand is decrease in demand and rightward shift in demand is increase in demand. Here, the demand is determined only by non-price factors. The following figure shows the shift in demand. 



             The factors which causes the change in position of demand curve leftward or rightward  is called determinant of demand. Here, the determinant are only non-price factors. The following points can be explained as the determinants of shift in demand.

1)Income: When the income of the consumer increases the demand for superior goods increases which causes rightward shift and when the income level decreases the demand for same good  decreases causing  leftward shift. But, in case of inferior goods demand curve it shifts leftward with the ride in income and vice versa.

2)Pub/adv: higher the pub/adv higher will be the demand and causes rightward shift in demand curve and lower the pub/adv lower will be the rise in demand which causes leftward shift.

3)Weather/season: The change in season causes rise in demand of adjustable good which causes leftward shift in demand curve.

4)Price expectation: If people expect the price of the commodity is increasable in future, they increases demand which causes rightward shift in demand curve but if they expect the price of such commodity is decreasable in future the demand deceases which causes leftward shift in demand curve.


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