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Shifts in the Demand Curve

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The point of equilibrium is the intersection of the supply and demand curves. The point of equilibrium changes based on movements in these two curves. What are some of the ways these curves shift and what is the corresponding change to the point of equilibrium?

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// 'Supply and Demand' are two major forces of the market. Here we'll discuss the shifts in demand and supply curve. First, we'll start with the shifts in demand curve. Further we'll tell which factors affect it. //

Shifts in the Demand Curve

When there is a change in an influencing factor other than price, there may be a shift in the demand curve to the left or to the right, as the quantity demanded increases or decreases at a given price. For example, if there is a positive news report about the product, the quantity demanded at each price may increase, as demonstrated by the demand curve shifting to the right:

Number of factors may influence the demand for a product, and changes in one or more of those factors may cause a shift in the demand curve. Some of these ...

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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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