Question

life where your demand was impacted by a shift factor and describe it using the economics how can we fix them .

Answer 1

Demand is the quantity of good that a consumer is willing to buy at given prices at a particular point of time.

The factors affecting or the factors which causes shift in demand are as follows -

1. Income of the consumer - Change in the income of the consumer affects the quantity demanded. In case of normal goods, increase in income causes the demand curve to shift to the right because the demand increases and vice versa.In case of inferior goods, increase in income causes the demand curve to shift to the left because the demand decreases and vice versa.

2. Trends and tastes - When a good or service comes in fashion or trend, it causes the demand curve to shift to the right as the demand rises and vice versa.

3. Price of related goods - Related goods are of two types- Substitute goods and Complementary goods.

In case of Substitute goods, the demand of one good rises with the rise in price of another and vice versa.

In case of Complementary goods, the demand of one good rise with the decrease in price other good because both the goods are used together as complements.

4. Size and Composition population - A larger population demands more quantity of goods and vice versa.

Demand for goods and services does not remain constant over a time. As a result the demand curve keeps shifting left or right. The shift in demand curve can only be fixed by the changing factors affecting demand.