Demand Curves

What is a movement in demand caused by?

Change in the price of the good itself

What is a shift in the demand curve caused by?

Change in any non-price determinant of demand ( consumers change in income )

A rightward shift represents?

Increase in quantity demanded

Leftward shift represents?

Decrease in quantity demanded

What factors affect the demand for a good?

Its own price, complementary goods, substitute goods, level of income, normal goods, inferior goods, consumers expectations, consumer tastes, unplanned factors, government regulations

Example of its own price factor

Price rises quantity demanded falls, price falls quantity demanded rises