Shift of the Demand Curve
Microeconomics
A diagram showing how the whole demand curve can shift to the right or left when a non-price determinant of demand changes.
Curves and Elements
demand
Demand Curve (D): Shows the original relationship between price and quantity demanded.
increase in demand
Increase in Demand (D to D1): A rightward shift of the demand curve, meaning more is demanded at every price.
decrease in demand
Decrease in Demand (D to D2): A leftward shift of the demand curve, meaning less is demanded at every price.
non price determinants
Non-price Determinants: Factors other than the good’s own price that can shift the demand curve.
A shift of the demand curve occurs when quantity demanded changes at every price level.
An increase in demand shifts the demand curve to the right, from D to D1.
A decrease in demand shifts the demand curve to the left, from D to D2.
Demand can shift due to factors such as income, tastes, advertising, population, expectations, or the prices of related goods.
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