In economics, what causes the demand curve to shift to the right?
Quick Answer
A shift of the demand curve to the right represents any event, excluding a change in price, that increases the quantity of a good or service demanded by buyers in the marketplace. The demand curve is an economic model of buyer behavior showing how a change in the price of a good or service results in an inverse change in the quantity of that good or service demanded by buyers in the marketplace.
Continue ReadingFull Answer
There are five factors, or types of events, that can cause a rightward shift of the demand curve. One is new information causes buyers to desire a good or service more than before. Another is a change in the price of a second related good or service that causes buyers to favor the first good or service more.
Third, an increase in the overall income of buyers in a market for a good or service results in greater demand for that product and a rightward shift of the demand curve. Information that suggests a higher future price for a good or service causes demand to increase in the present, and an increase in the overall number of buyers in a market causes the demand for a good or service to shift to the right as well.
Learn more about EconomicsRelated Questions
-
Q:
What does the law of supply state?
A: In economics, the law of supply states that, considering all aspects equal, the price of a marketed good or service is directly proportional to the quantit... Full Answer >Filed Under: -
Q:
What is demand in economics?
A: In economics, demand is the quantity of goods or services that consumers are able and willing to buy at a given price at a particular time. The law of dema... Full Answer >Filed Under: -
Q:
What is difference between slope and the calculation of elasticity for a linear demand curve?
A: The slope and elasticity of a linear demand curve are extremely closely linked, but where the slope itself is just a measure of how much demand changes giv... Full Answer >Filed Under: -
Q:
What would not shift the demand curve for beef?
A: A change in price for a particular good is the most common factor that would not shift the demand curve for beef, explains Tutor2U. In contrast, things tha... Full Answer >Filed Under:
