Reasons For Shifting In The Demand Curve

 Reasons For Shifting In The Demand Curve

There are some reasons for shifting in the demand curve

Income: when income changes , demand curve also changes.

But the shift in demand curve due to change in income is different for normal goods and inferior goods.

For Normal Goods :

When income increases, the demand for normal goods increases and when income decreases, the demand for normal goods decreases.  For this reason, when income increases, the demand curve shifts to the right and when income decreases, the demand curve shifts to the left for normal goods.

For Inferior Goods:

Income and inferior goods are negatively related.  When income increases, the demand for inferior goods decreases and when income decreases, the demand for inferior goods increases. Therefore, when income increases, the demand curve for inferior goods shifts to the left and when income decreases, the demand curve shifts to the right.

Price Of Related Goods :Shift in demand curve for substitutes goods and complements goods are related to price. 

Substitutes Goods :

In the case of substitute goods, when the price of one goods increases, the demand for the other will increase, then the demand curve will shift to the right, and when the price of one decreases, the demand for the other will decrease, then the demand curve will shift to the left.
  

For Complements Good

In the case of complements goods, when the price of one goods increases, the demand for the other will decrease, then the demand curve will shift to the left , and when the price of one decreases, the demand for the other will increase, then the demand curve will shift to the right.

Taste:

The goods that the consumer likes more will certainly consume more and the goods that consumers likes less will consume less.

Expectation:

If the consumer expects the price of goods to decrease in the future, he will wait for the future rather than buying now.  He will consume the goods when the price falls but if he expects the price to rise in the future he will keep buying the goods now.

Number of Buyers :

If the number of buyers in the market is more, the demand for goods will be more, then the demand curve will shift to the right and if the number of buyers in the market is less, then the demand for goods will decrease, then the demand curve will shift to the left.