Factor Causing the shift in Demand
Factor Causing the shift in demand is given in the table below:-
| Description | Rightward shift in Demand Curve | Leftward shift in Demand Curve |
| Change in income a. Normal goods. Inferior goods |
Increase in income Increase in demand. A decrease in income Increase in demand. | A decrease in income Decrease in demand. Increase in income Decrease in demand. |
| Change in the price of related goods . Substitutes. ComplementsChange in advertisementexpenditure |
A rise in the price of Y goods Rise in the demand for X goods Fall in the price of Y goods Rise in the demand for X goods
Rise in advertisement expenditure Rise in Demand |
Fall in the price of Y goods Fall in the demand for X goods A rise in the price of Y goods Fall in the demand for X goods
Fall in advertisement expenditure Fall in Demand
|
| Change in the tax rate | Fall in tax rate Rise in demand | A rise in tax rate Fall in demand |
| Change in the size of the population | Rise in the population Rise in demand | Fall in the population Fall in demand |
| Change in fashion | Goods are in fashion Rise in demand | Goods are in out fashion Fall in demand |
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