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Questions
Give any three factors that can cause a rightward shift of the demand curve.
State two factors that cause an increase in the demand for a commodity (rightward shift of the demand curve).
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Solution 1
Three factors that can cause a rightward shift of the demand curve are as follows:
- Increase in the income of the consumer.
- An increase in the price of substitute goods can also cause a rightward shift in the demand curve.
- Change in tastes and preferences in favour of the commodity.
Solution 2
The following two factors can cause an increase in the demand for a commodity.
- A rise in consumer income typically leads to an increase in demand for a commodity at any given price level.
- An increase in the price of a substitute good can lead to an increase in demand for a commodity because it becomes more affordable in comparison to its substitute.
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