Question

What do you understand by Shift of demand curve?

What is meant by shift of the demand curve?

What is meant by change in demand?

Answer 1

The amount purchased of a commodity may change not only because of a change in its own price but also due to changes in other factors like income, taste, prices of other commodities, size of population, etc. When the amount purchased of a commodity rises or falls because of a change in factors other than the commodity's own price, it is called a change in demand.

Answer 2

When the quantity of a product bought increases or decreases due to factors other than its own price, it is known as a change in demand. In such cases, consumers tend to purchase more or less of the commodity because of these non-price influences.

A change in demand occurs when consumers buy more or less of a product at the same price due to factors like income, preferences, or the prices of related goods. This change is shown by a shift in the entire demand curve. If the curve shifts rightward from DD to D₁D₁, it reflects an increase in demand, moving from OQ₀ to OQ₁ at price OP. Conversely, a leftward shift from DD to D₂D₂ shows a decrease in demand, where demand falls from OQ₀ to OQ₂ at the same price OP.