Q:

In economics, what causes the demand curve to shift to the right?

A:

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.

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Full 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.

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