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Class : 11
Unit : Economics


What is shift in demand curve (change in demand)?

Ans : When there is change in quantity demand not because of price but because of some other reasons such as change in income change in fashion, etc. it is known as shift in demand curve, demand curve shift rightward or leftward from it’s original demand curve. It is also known as change in demand. There are two types of shift in demand. They are: a) Rightward shift in demand curve (increase in demand):- Rightward shift in demand refers to more demand at same price of the commodity due to favorable change in other factors. In this situation, the initial demand curve shift rightward of the original demand curve. The factors that causes rightward shift in demand curve are increase in consumers income, increase in size of population, increase in price of substitute goods. b) Leftward shift in demand curve (decrease in demand):- Leftward shift in demand refers to less demand at same price of the commodity due to unfavorable change in other factors. In this situation, the initial demand curve shift leftward of the original demand curve. The factors that causes leftward shift in demand curve are decrease in consumer income, decrease in size of population, decrease in price of substitute goods. The concept of shift in demand can be explained with the help of following diagram: In the given diagram, ox-axis represents quantity demand and oy-axis represent price. DD is the original demand curve which slopes downward from left to right, which shows that at price OP, quantity demand is OM. D₁D₁ is the rightward shift in demand curve. It shows that at same price OP, quantity demand increases from OM to OM₁. D₂D₂ is the leftward shift in demand curve. It shows that at same price OP quantity demand decreases from OM to OM₂.