What do you mean by shift in demand curve?
Shift in demand: When there are change in factors other
than a good’s own price which effect the quantity purchased, we call these
changes shift in demand.
Demand increases when the quantity demanded at each price
increases, and when the demand decreases the quantity demanded at each price
decreases.
An example of how a change in a non-price variable shifts
the demand curve is as follows:-
Example: We know that the average income of Americans
rose sharply during the long economic boom of the 1990s. Because there is a
powerful income effect on the demand for automobiles demanded at each price
rise.
for example, if the average income rose by 10 percent,
the quantity demand at each price of $10,000 might rise from 10 million to 12
million units. This would be a shift in the demand curve because the increase
in quantity demanded reflects factors other than the good’s own price. The net
effect of the changes in under lying influences is what we call an increase in
demand.
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